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The current CEO of 23andMe is Joe Selsavage. He was made interim CEO after Anne Wojcicki resigned after the company filed for bankruptcy. Wojcicki, who co-founded 23andMe, is still on the board and is considering a bid to acquire the assets of the company.
The company, famous for home-based DNA testing services, sought Chapter 11 bankruptcy protection on March 23, 2025. It wants to sell itself in a court-supervised procedure. It has managed to raise $35 million in financing to keep its business running in the meantime.
The bankruptcy comes after years of financial troubles. The company's value fell from $6 billion in 2021 to approximately $50 million. Staff cuts and suspended product development were not enough to keep the business afloat.
Why did 23andMe file for bankruptcy?
CNN reported that 23andMe went bankrupt because it incurred financial losses and saw its market value drop. Its stock price plummeted after it went public in 2021. The firm was not able to sustain revenue growth and customer acquisition.
Operating expenses also played a role in its financial difficulties. The firm cut its staff by 40% and ceased investing in new therapeutic offerings. These were not enough to stop the bankruptcy filing.
Through filing under Chapter 11, the company plans to dispose of its assets and keep its business running. Sale will be under the control of the court for equitable treatment of stakeholders.
What happens to customers' DNA data?
According to ABC7, 23andMe guarantees its customers that no bankruptcy will come in the way of their genetic information. It will continue keeping and handling user information the same way. However, the transition of the business may result in a change of ownership.
Privacy issues have been raised because the company is looking for buyers. Some professionals fear that the new owners would treat customer information differently. Yet, the company stated that it would maintain its current privacy policies.
Customers are requested to keep track of company news. They can also check privacy settings or ask for data deletion if they have issues.
What is the future of 23andMe?
The fate of the company rests on the sale process, according to CNBC. The company is optimistic that it will find buyers who will be able to keep it running. Former CEO Anne Wojcicki might try to buy back the company.
If a good buyer is acquired, the company might be able to continue providing DNA testing services. It might have to alter its business model to be profitable. New leadership will determine its future.
If there is no buyer, the company can close or be acquired by another firm. Customers and investors will have to wait for announcements.
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23andMe's bankruptcy is a significant shift for the company. Joe Selsavage is currently running the company as it looks for new ownership. The company remains in business as it goes through the court process.
Customers' information is still safe for the time being. But the future of the company is uncertain. The fate of the sale will decide if the company can survive in the business of DNA testing.
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