Gene testing company 23andMe announced on Sunday that it had filed for Chapter 11 bankruptcy protection as part of a strategy to facilitate its sale, following years of challenges in establishing a profitable business model.
In a statement regarding the bankruptcy filing, the company revealed that CEO Anne Wojcicki had resigned with immediate effect, though she will remain on the board of directors. Mark Jensen, chair of the company’s board and member of the Special Committee, commented, “After a thorough evaluation of strategic alternatives, we have determined that a court-supervised sale process is the best path forward to maximize the value of the business.”
The company had already been undergoing significant restructuring, announcing in late 2023 that it would cut 40% of its workforce—around 200 employees—and discontinue further development of its therapies. This move followed a rocky period that included the resignation of all seven of the company’s independent directors in September, who cited dissatisfaction with Wojcicki’s leadership and efforts to take the company private.
23andMe, which went public in 2021, has struggled to achieve profitability since its IPO. The stock briefly soared after the listing, briefly valuing the company at $6 billion, and Wojcicki, who owned 49% of the company, became a billionaire. However, the company has yet to post a profit.
The company’s core product—an at-home DNA testing kit—offers personalized genetic insights, such as identifying potential health risks like Alzheimer’s disease or certain cancers. While 23andMe initially sought to turn one-time customers into subscribers with promises of ongoing feedback and personalized wellness plans, it has reportedly fallen short of its goals in this regard.
As the company moves forward with its Chapter 11 filing, it hopes the court-supervised sale process will provide a path to sustainability, though the future remains uncertain.
