**23andMe Initiates Bankruptcy Proceedings as CEO Anne Wojcicki Stepps Down**
The biotechnology firm 23andMe has formally entered bankruptcy, with co-founder and CEO Anne Wojcicki stepping down from her role immediately.
### **Bankruptcy Submission and Business Operations**
On Sunday, 23andMe filed a **voluntary Chapter 11 bankruptcy petition** in the U.S. Bankruptcy Court for the Eastern District of Missouri. The company’s **press release** stated its intention to maintain normal operations during the sales process, promising customers that their data handling, storage, and security will remain unchanged.
### **Financial Challenges and Legal Responsibilities**
The organization plans to utilize funds from the sale to **resolve pending legal responsibilities** tied to a **significant data breach** that took place in October 2023, affecting the personal information of **6.9 million users**. As part of a settlement, 23andMe committed to compensating **$30 million** to the impacted customers.
Once valued at **$6 billion**, the company’s worth plummeted by **98%** by October 2024. Furthermore, in September 2024, **all independent board members stepped down**, indicating more serious financial and operational issues.
### **Wojcicki’s Resignation and Future Aspirations**
Anne Wojcicki’s departure was described as a **mutually agreed decision** with the company’s Special Committee. In her statement on X (formerly Twitter), Wojcicki conveyed her **disappointment** about the developments, particularly following her **attempt to take the company private** being declined in early March 2025.
“Although I am disheartened that we have reached this point and my proposal was turned down, I remain supportive of the company and plan to participate as a bidder,” Wojcicki stated. “I have stepped down as CEO to position myself to pursue the company as an independent bidder.”
During this transition, **Joe Selsavage**, the chief financial and accounting officer, will assume the role of CEO.
### **Next Steps: Asset Liquidation and Employee Effects**
23andMe has sought court approval to **liquidate its assets** through a **45-day bidding process**, followed by an auction. The company highlighted that any prospective buyer must adhere to **data privacy regulations**, and the transaction will require regulatory permissions.
In November 2024, 23andMe revealed intentions to **reduce its workforce by 40%** as part of a restructuring initiative, in addition to **ceasing further advancements** in its DNA testing technology. The company has also submitted motions to ensure that remaining employees maintain their wages and benefits.
### **Company’s Prospects and Data Security Assurance**
Mark Jensen, chair of the Special Committee, remarked that a **court-monitored sale** represents the optimal method to **maximize the company’s value**. He reassured clients that **data privacy is a top concern**, and any potential buyer will be required to uphold rigorous data protection protocols.
As 23andMe undergoes bankruptcy proceedings, the future of this once-renowned DNA testing firm remains in flux.