23andMe files for bankruptcy protection amid financial struggles, CEO exit
What's the story
Leading DNA testing company 23andMe has filed for bankruptcy protection. The company's co-founder and CEO, Anne Wojcicki, has also resigned with immediate effect. The firm will now be looking to sell itself under court supervision. Despite the changes in leadership and ownership structure, 23andMe assures customers that there will be no changes to how their data is stored or managed during the sale process.
Consumer alert
California Attorney General advises customers to remove data
The Attorney General of California, where 23andMe is based, has also issued a consumer alert. The advisory encourages customers to delete their data from the site as the company is reportedly facing financial difficulties. The warning comes in light of recent events and highlights the potential risks associated with the company's current financial situation.
Company decline
23andMe's value plummets amid financial struggles
Once valued at $6 billion, 23andMe has struggled immensely in recent months. The company settled a lawsuit in September for not protecting the privacy of nearly seven million customers whose data was compromised in a breach. In November, it laid off 200 employees, making up 40% of its workforce. All of these events have led to the company's current financial distress and subsequent bankruptcy filing. Earlier this year, the company explored "strategic alternatives," including a sale or restructuring.
Leadership transition
Joe Selsavage appointed interim CEO
In the wake of Wojcicki's resignation, Joe Selsavage has been named the interim CEO. Although she is resigning from her executive position, Wojcicki will remain on the board. This change is part of 23andMe's plan to steer through its bankruptcy proceedings and possible sale under court supervision while maintaining continuity in leadership during this difficult time.