23andMe Files for Bankruptcy as CEO Anne Wojcicki Departs Amid Financial Turmoil

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Genetic testing pioneer 23andMe filed for Chapter 11 bankruptcy protection on March 24, 2025, marking a catastrophic collapse for a company once valued at $6 billion.

Co-founder and CEO Anne Wojcicki resigned immediately, though she will remain on the board and plans to bid independently for the company’s assets during bankruptcy proceedings.

Bankruptcy and Leadership Shift
The San Francisco-based firm initiated court-supervised restructuring in Missouri federal court, aiming to sell “substantially all” of its assets.

CFO Joseph Selsavage has taken over as interim CEO. Wojcicki’s resignation follows multiple failed attempts to take the company private, including a rejected $2.53/share bid in February and a subsequent 41-cent/share offer earlier in March.

Financial and Operational Struggles
23andMe’s stock plummeted over 40% in premarket trading, with shares hovering near $1 and a market cap below $50 million—a stark contrast to its $3.5 billion IPO valuation in 2021.

The company has faced years of financial strain, exacerbated by a 2023 data breach affecting nearly 7 million customers, which led to a $30 million lawsuit settlement and regulatory scrutiny.

Restructuring and Future Plans
The bankruptcy filing includes a $35 million debtor-in-possession financing commitment to maintain operations during the sale process.

Board Chair Mark Jensen emphasized that data privacy will remain a priority in any transaction, addressing lingering concerns from the breach.

Wojcicki acknowledged accountability for the company’s challenges in a social media statement, while reaffirming her belief in its potential.

Legacy and Uncertain Future
Founded in 2006, 23andMe revolutionized consumer DNA testing but struggled to transition into therapeutics and navigate post-IPO pressures.

Its bankruptcy underscores the risks of rapid growth and evolving regulatory landscapes in biotech.

As the company enters a court-managed sale, Wojcicki’s bid could determine whether 23andMe’s legacy survives under new ownership or fades as a cautionary tale of Silicon Valley ambition.

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