23andMe Files for Bankruptcy, CEO Wojcicki Resigns Amid Company's Financial Struggles

23andMe, the once-pioneering DNA testing company, has filed for Chapter 11 bankruptcy protection as it grapples with declining demand and mounting financial challenges. In a surprising turn of events, co-founder and CEO Anne Wojcicki has resigned from her position but will remain on the company's board of directors.

Bankruptcy Filing and Leadership Changes

On Sunday, 23andMe officially filed for bankruptcy in the U.S. Bankruptcy Court for the Eastern District of Missouri. The company, which was previously valued at $6 billion, reported total assets of approximately $277 million and total debts of $215 million at the end of 2024.

Following Wojcicki's resignation, Joseph Selsavage, 23andMe's chief financial and accounting officer, has been appointed as interim CEO. The company's board chair, Mark Jensen, stated that pursuing Chapter 11 bankruptcy is "the best path forward to maximize the value of the business."

Financial Decline and Strategic Alternatives

23andMe's financial woes have been evident for some time, with the company reporting a 28% year-over-year decline in revenue, totaling $191.8 million in 2024. This downturn has been attributed to waning consumer interest in at-home DNA and ancestry tests.

In response to these challenges, 23andMe had previously announced several cost-cutting measures:

• In November 2024, the company laid off 40% of its workforce, approximately 200 employees.
• The cancer therapeutics R&D division, which was developing two immuno-oncology programs in early-phase clinical trials, was shuttered.
• In January 2025, 23andMe disclosed that it was exploring strategic alternatives, including a potential sale.

Wojcicki's Privatization Bid and Future Plans

Prior to the bankruptcy filing, Wojcicki had made multiple attempts to take 23andMe private. Her initial offer of $0.40 per share in July 2024 was later increased to $2.53 per share in February 2025, valuing the deal at approximately $74 million. However, a special committee of the board found these offers insufficient.

In a statement posted on social media, Wojcicki expressed her intention to remain involved in the company's future: "While I am disappointed that we have come to this conclusion and my bid was rejected, I am supportive of the company and I intend to be a bidder. I have resigned as CEO of the company so I can be in the best position to pursue the company as an independent bidder."

As 23andMe navigates this challenging period, the company has emphasized its commitment to safeguarding customer data and maintaining transparency throughout the sale process. The genetic information of over 15 million customers remains a valuable asset, and data privacy will be a crucial consideration in any potential transaction.