Genetic testing company 23andMe has filed for Chapter 11 bankruptcy protection as it seeks a buyer amid mounting financial losses, a major data breach back in 2023, and the abrupt resignation of its co-founder and CEO, Anne Wojcicki.

The California-based firm, known for its at-home DNA testing kits, announced the bankruptcy filing on Sunday, stating it intends to restructure its debts and assets while remaining operational during the sale process. The company also revealed that Wojcicki had stepped down “effective immediately” by mutual agreement.

In a post on X (formerly Twitter), Wojcicki expressed disappointment over the bankruptcy but said she resigned to position herself as an “independent bidder” for the company.

Wojcicki’s departure follows multiple failed takeover attempts, rejecting the most recent offer of $0.41 per share earlier this month, an 84% cut from an offer the previous month since her private equity partner in that bid had walked after the board’s rejection.

The 23andMe Special Committee released news today indicating their plan to take the company through the Chapter 11 process. 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. I have…

— Anne Wojcicki (@annewoj23) March 24, 2025

23andMe, which has sold over 12 million DNA testing kits since its 2006 launch, has never turned a profit. Its latest financial results showed a pre-tax loss of over $128 million (£98.74m) for April–December 2024, citing lower kit sales and declining prices.

In November 2023, the company laid off 200 employees (40% of its workforce at the time) and halted development of all therapies as part of a restructuring effort.

The firm faced regulatory scrutiny in the UK and Canada over a 2023 data breach, which exposed personal information – including family trees and birth years – of 6.9 million customers. The breach, caused by hackers using recycled passwords, in a technique called credential stuffing, did not compromise DNA records.

“For those customers who are concerned and want to take a proactive approach to this news, I would start by considering the deletion of your data from 23andMe,” said Adam Pilton, senior cybersecurity consultant at CyberSmart.

“Credential stuffing thrives on the recurring use of passwords across several accounts, so it is vital to use unique passwords and multi-factor authentication. In addition, familiarise yourself with 23andMe’s privacy policy and any changes that might occur under new ownership.

Finally, I would recommend that all customers at least monitor 23andMe’s announcements regarding data handling during the sale process. A company holding this amount of data should educate users on the best security practices going forward.”

In a press release on company’s website, Mark Jensen, chair and member of the Special Committee of the Board of Directors, said: “After a thorough evaluation of strategic alternatives, we have determined that a court-supervised sale process is the best path forward to maximise the value of the business.

Recommended reading

• Quantexa Secures $2.6BN Valuation Following $175M Series F
• Scottish BioTech Company Secures £3.4m Investment
• Scots Gov Courts Investors for £100BN Offshore Wind Market

“We expect the court-supervised process will advance our efforts to address the operational and financial challenges we face, including further cost reductions and the resolution of legal and leasehold liabilities.

“We believe in the value of our people and our assets and hope that this process allows our mission of helping people access, understand and benefit from the human genome to live on for the benefit of customers and patients.”

“We want to thank our employees for their dedication to 23andMe’s mission. We are committed to supporting them as we move through the process. In addition, we are committed to continuing to safeguard customer data and being transparent about the management of user data going forward, and data privacy will be an important consideration in any potential transaction.”