Anne Wojcicki Steps Down Amid Customer Data Concerns

March 24, 2025 - In a shocking turn of events, 23andMe, the once-thriving genetic testing company co-founded by Anne Wojcicki, has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Eastern District of Missouri. Alongside this filing, Wojcicki announced her immediate resignation as CEO, though she will remain on the company’s board. This development has sparked widespread concern about the future of customer data protection, particularly the sensitive DNA information of over 15 million users worldwide.

Anne Wojcicki Resigns as 23andMe Faces Financial Collapse

Anne Wojcicki, a prominent figure in the biotech industry and co-founder of 23andMe, has stepped down from her role as CEO amid the company’s escalating financial struggles. In a statement posted on X early Monday, Wojcicki expressed accountability for the challenges 23andMe has faced, stating, "We have had many successes but I equally take accountability for the challenges we have today." Despite her departure as CEO, she remains committed to the company, hinting at plans to bid independently to reclaim it during the bankruptcy process.

A History of Turmoil: From Data Breaches to Bankruptcy

Founded in 2006, 23andMe gained fame for its at-home DNA testing kits, which offered customers insights into their ancestry and health risks. At its peak in 2021, the company was valued at $6 billion. However, a series of setbacks, including a massive 2023 data breach exposing the personal information of nearly 7 million users, severely damaged its reputation. The breach led to a $30 million lawsuit settlement and a loss of consumer trust, compounding the company’s financial woes.

Weak Demand and Failed Business Model

Despite its early success, 23andMe struggled to establish a sustainable business model. The one-time nature of its DNA testing kits limited recurring revenue, and efforts to pivot toward drug development and subscription services fell flat. Last year, the company laid off 40% of its workforce (approximately 200 employees) and halted all therapeutic development, signaling deeper troubles. These factors culminated in Sunday’s bankruptcy filing, aimed at facilitating a court-supervised sale of its assets.

What Happens to 23andMe Customer Data Now?

With 23andMe’s bankruptcy filing, the fate of its vast database containing the DNA of over 15 million customers hangs in the balance. The company has assured users that there will be "no changes to the way the company stores, manages, or protects customer data" during this process. However, privacy advocates are urging customers to delete their genetic data, citing concerns that it could be sold to third parties, such as data brokers or pharmaceutical companies, as part of the asset sale.

Privacy Risks in the Bankruptcy Process

Under Chapter 11, 23andMe plans to solicit bids for its assets over a 45-day period, a process that could see its genetic database transferred to new ownership. While the company has promised to comply with applicable data protection laws, experts warn that the sensitive nature of DNA data makes it a prime target. California Attorney General Rob Bonta recently issued a consumer alert, reminding 23andMe users of their rights under the Genetic Information Privacy Act (GIPA) to request data deletion.

How to Protect Your DNA Data

For concerned customers, deleting 23andMe data is straightforward: log into your account, navigate to the "Settings" section, and select "23andMe Data" to initiate account closure. However, once data is sold or transferred, such protections may no longer apply, raising questions about long-term privacy implications.

Anne Wojcicki’s Next Move: A Bid to Reclaim 23andMe

Despite resigning as CEO, Anne Wojcicki isn’t stepping away entirely. She has signaled her intent to bid for 23andMe independently, following multiple rejected proposals to take the company private earlier this year. Her latest offer of 41 cents per share valued the company at just $11 million, a stark contrast to its current $50 million valuation and a far cry from its $6 billion peak. Wojcicki’s determination underscores her belief in the company’s potential, even as it navigates this turbulent chapter.

The Future of 23andMe and Genetic Testing

As 23andMe moves forward with its bankruptcy sale, supported by $35 million in debtor-in-possession financing from JMB Capital Partners, the genetic testing industry watches closely. The company’s downfall serves as a cautionary tale about the challenges of monetizing consumer DNA data while maintaining trust and profitability. Whether Wojcicki succeeds in her bid or a new owner emerges, the handling of customer data will remain a critical issue.

For now, 23andMe customers are left weighing their options, balancing curiosity about their genetic heritage with the risks of data exposure in an uncertain future.