Anne Wojcicki Resigns Amid 23andMe Company Financial Collapse and Data Security Crisis

Once a household name in personal genomics, the 23andMe company has filed for Chapter 11 bankruptcy protection. Along with the filing came another seismic shift: co-founder and CEO Anne Wojcicki stepped down, so she could try to buy the company herself.

The announcement punctuates a swift and stunning collapse for a business once valued at $6 billion.

A Sale, Not a Shutdown

The bankruptcy filing, submitted in Missouri federal court, aims to set the stage for a sale. “23andMe filed for Chapter 11 bankruptcy to facilitate a sale process to maximize the value of its business,” the company said in a statement. The goal is to reduce costs, attract bids, and keep the business operating during the transition.

For now, it’s business as usual, at least on the surface. Customers will still be able to access their accounts, and the company says there will be no immediate changes in how it stores or protects genetic data. Behind the scenes, though, everything is up for negotiation.

The 23andMe company will run a 45-day bidding process under court supervision. Estimated assets and liabilities both fall between $100 million and $500 million.

Wojcicki Steps Aside But Not Away

Anne Wojcicki has resigned from her role as CEO but made it clear she’s not leaving the stage. She intends to join the race to buy back the company.

“I have resigned as C.E.O. of the company so I can be in the best position to pursue the company as an independent bidder,” she wrote in a post on social media.

Wojcicki co-founded the 23andMe company in 2006 with a vision to democratize access to personal genomics. Her leadership helped propel the startup into public markets in 2021 via a SPAC merger. But her tenure hasn’t been without turbulence.

Over the last years, she made multiple attempts to take the company private again. All were rejected by the board’s special committee, leading to the resignation of seven independent directors in late 2024. The move signaled growing friction over the company’s direction and Wojcicki’s control over nearly half its voting shares.

From Peak Valuation to Freefall

At its peak, the 23andMe company was a disruptor. Its direct-to-consumer DNA kits gave everyday people access to ancestry reports, health risks, and genetic traits from a simple saliva sample. That model worked well until it didn’t.

Recurring revenue never materialized at scale. Efforts to branch into therapeutics and research partnerships fizzled. The company laid off 40% of its workforce, shut down its therapeutics division, and saw its stock price collapse.

In the first nine months of the current fiscal year, the 23andMe company reported a 7% drop in revenue and $174 million in losses. Its market capitalization has since dropped below $20 million.

Wojcicki didn’t sidestep accountability. “We have had many successes, but I equally take accountability for the challenges we have today,” she wrote on the X platform. “There is no doubt that the challenges faced by the 23andMe company through an evolving business model have been real, but my belief in the company and its future is unwavering.”

A Breach That Broke Trust

The turning point wasn’t just financial, it was ethical too. In late 2023, hackers accessed sensitive data from nearly 7 million customer profiles, including targeted data related to Jewish and Chinese ancestry. The breach triggered a class-action lawsuit and an investigation by California’s attorney general, who later advised residents to consider deleting their genetic data.

Though the 23andMe company responded by saying it was taking additional steps to protect information, the damage was done. Public trust, a crucial currency in the health tech world, was eroded.

“As I think about the future,” Wojcicki added, “I will continue to tirelessly advocate for customers to have choice and transparency with respect to their personal data, regardless of platform.”

What Comes Next?

Chief Financial and Accounting Officer Joseph Selsavage has been appointed interim CEO. The company has declined further public comment since announcing the bankruptcy and leadership change.

For customers, questions about genetic privacy and data stewardship remain top of mind. For the industry, the collapse of the 23andMe company is a sharp warning: disrupting healthcare doesn’t exempt you from its most essential principles, security, sustainability, and trust.Whether Wojcicki succeeds in buying back her company is uncertain. But one thing is clear: the future of the 23andMe company, like the genetic code it analyzes, is now in flux.