23andMe, the genetic testing company, is facing significant challenges as CEO Anne Wojcicki has resigned and the company filed for Chapter 11 bankruptcy. The company has experienced turmoil, including data breaches, class action lawsuits, and internal disagreements between Wojcicki and the board. Concerns about user data protection have emerged, with calls for users to delete their data amid fears of potential sales of user information after a possible acquisition.
23andMe maintains that it does not share user data with employers, insurers, or law enforcement, but concerns remain about control over personal information once shared. Users can request deletion of their data, although some information must be retained for legal reasons.
The company’s troubles were exacerbated by a significant data breach in 2023, which resulted in hackers accessing and selling user data, leading to a $30 million class action settlement. Additionally, the company has laid off 40% of its workforce and reported $2.3 billion in debt while seeking potential buyers. Despite generating significant revenue, 23andMe has not turned a profit and has seen its stock value decline since its peak in February 2021.
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