DNA testing company 23andMe has filed for bankruptcy protection, marking a significant downturn for the once-highly valued firm. Co-founder and CEO, Anne Wojcicki, has resigned immediately, and the company will now attempt to sell itself under court supervision. Despite the financial challenges, 23andMe assured customers that there would be no changes to how it handles customer data.

The company, which became popular for its saliva-based DNA testing kits, reached a peak valuation of $6bn but has faced increasing difficulties in recent years. It went public in 2021 but has never made a profit. In addition to financial struggles, 23andMe was hit with a lawsuit settlement over a data breach in 2023, exposing personal information of millions of users. Following the breach, the company laid off 40% of its workforce.

Financial Chief Joe Selsavage has been appointed as interim CEO, while Wojcicki will remain on the board. Despite efforts to pivot into drug development and launch subscription services, 23andMe’s business model struggled. The company also faced issues with customer engagement, as users found limited value after receiving their DNA reports.