23andMe Files for Bankruptcy; CEO Anne Wojcicki Steps Down
According to WSJ, 23andMe, a Genetic testing company, has filed for Chapter 11 bankruptcy protection to facilitate its sale. CEO Anne Wojcicki has resigned and plans to pursue an independent acquisition of the company.
Sharing in a post on X Anne Wojcicki said she is resigning to:
“be in the best position to pursue the company as an independent bidder,”
She also mentioned that she was disappointed with the rejection of taking the company private.
The company has secured $35 million in financing from JMB Capital Partners to maintain operations during the sale process.
Being ambitious, the CEO also said in her post on X on Sunday:
“If I am fortunate enough to secure the company’s assets through the restructuring process, I remain committed to our long-term vision of being a global leader in genetics.”
This development follows a significant data breach in 2023 affecting approximately 7 million customers, leading to a decline in revenue and user trust. Additionally, 23andMe being dubbed as the DNA-testing company has reduced its workforce by 40% and halted therapeutic development.
According to the Financial Times, Anne Wojcicki will remain on the company's board of directors, but interim CEO Joe Selsavage will oversee its operations during this transitional period.
For more insights on the challenges faced by tech startups, you can read this article on All Blog Things.
