Popular DNA testing firm 23andMe has filed for bankruptcy protection, and announced that its co-founder and CEO, Anne Wojcicki, has resigned with immediate effect.
The company will now attempt to sell itself under the supervision of a court.
23andMe said in a press release that it plans to continue operating throughout the sale process and that there “are no changes to the way the company stores, manages, or protects customer data.”
On Friday, the Attorney General in 23andMe’s home state of California issued a consumer alert advising customers to delete their data from the site given the company’s “reported financial distress.”
23andMe’s saliva-based test kits were once celebrated among customers and investors, who helped to push the company’s value as high as $6bn (£4.6bn).
But it has been struggling for survival in recent months.
In September, the firm settled a lawsuit alleging that it failed to protect the privacy of nearly seven million customers whose personal information was exposed in a 2023 data breach.
Two months later, it cut 200 employees, amounting to 40% of its workforce.
23andMe said its finance chief, Joe Selsavage, will take over as interim chief executive.
Ms Wojcicki will continue to serve as a member of the board, it added.