Anne Wojcicki; the 23andme DNA kit. Photo:
Anna Webber/Variety via Getty; Tiffany Hagler-Geard/Bloomberg via Getty
Genetics company 23andMe has filed for bankruptcy and its CEO is stepping down, leaving many users concerned about the future of their data.
On Monday, March 24, 23andMe announced that it has “initiated voluntary Chapter 11 proceedings” to “facilitate a sale process to maximize the value of its business.”
The company said that it “intends to continue operating its business in the ordinary course throughout the sale process,” and that there will be “no changes” to the way 23andMe “stores, manages, or protects customer data.”
23andMe also announced on Monday that co-founder Anne Wojcicki is resigning as CEO “effective immediately.” Joe Selsavage, Chief Financial and Accounting Officer, has been appointed as Interim Chief Executive Officer.
The proceedings come after a Special Committee rejected Wojcicki’s “final non-binding acquisition proposal” on Monday, March 10, the company added.
A 23andMe DNA kit. Matt Winkelmeyer/Getty
Wojcicki said in a statement posted to X that she stepped down “so I can be in the best position to pursue the company as an independent bidder.”
“The 23andMe Special Committee released news today indicating their plan to take the company through the Chapter 11 process,” she wrote. “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.”
The former CEO said she takes accountability “for the challenges” currently facing the company, but added, “my belief in the company and its future is unwavering.”
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Previously, 23andMe said Wojcicki intended “to take the company private, and is not open to considering third party takeover proposals.”
“Anne also expressed her strong commitment to customer privacy, and pledged to maintain the company’s current privacy policy, including following the intended completion of the acquisition she is pursuing,” 23andMe said in the previous statement.
Anne Wojcicki attends the 2024 Vanity Fair Oscar Party Hosted By Radhika Jones at Wallis Annenberg Center for the Performing Arts on March 10, 2024 in Beverly Hills, California. Jon Kopaloff/Getty
The 23andMe bankruptcy filing comes four months after they laid off around 200 people, amounting to about 40% of the company’s workforce, according to The Guardian.
The major changes to 23andMe have left many people wondering what will happen to their data. The company experienced a security breach in October 2023, impacting nearly 7 million customers, NBC News reported.
A spokesperson for 23andMe previously told PEOPLE that the company has “strong customer privacy protections in place” and that they “are committed to protecting customer data and are consistently focused on maintaining the privacy of our customers. That will not change.”
The company said it is “subject to state and federal consumer privacy and genetic privacy laws that, while similar to HIPAA, offer a more appropriate framework to protect our data than privacy and security program requirements in HIPAA.”
In her Monday statement, Wojcicki vowed to “remain committed” to 23andMe’s “long-term vision of being a global leader in genetics and establishing genetics as a fundamental part of healthcare ecosystems worldwide.”
“As I think about the future, I will continue to tirelessly advocate for customers to have choice and transparency with respect to their personal data, regardless of platform,” she wrote.
