23andMe, the company known for its mail-in self-testing kits for DNA testing, is filing for bankruptcy after experiencing slowing sales. Anne Wojcicki, who co-founded the company in 2006, is stepping down as CEO as 23andMe looks for a buyer. The decision to file for bankruptcy comes after a decrease in demand for the product and a major data breach in 2023, which affected 6.9 million users. The company also faced layoffs of about 40% of its workforce in late 2024, and its stock price fell below a dollar, putting it at risk of being delisted from the NASDAQ.
In a message to customers, 23andMe reassured that there are no immediate changes to how customer data is stored, managed, or protected. The company is still operating and selling DNA kits, with plans to find a partner who values customer data privacy. 23andMe rose to prominence in the field of DNA self-testing, offering users insights into their genetic makeup, potential relatives, and ancestry for a fee of $99 per kit. However, the company’s growth has slowed since its public offering in 2021.
Users of 23andMe who are concerned about the fate of their data in a potential sale have options. They can download their information, delete their account, and request that their DNA material be discarded to prevent it from being used in future research. However, data that has already been used in research cannot be removed. This allows users to maintain control over their genetic information even as the company goes through changes.
The bankruptcy filing and leadership transition mark a challenging time for 23andMe as it navigates financial difficulties and seeks a buyer to continue its mission of helping people access, understand, and benefit from their genetic information. The company’s struggles reflect broader challenges in the direct-to-consumer genetic testing industry, where concerns about data privacy and the value of genetic information have become prominent.
Despite the challenges facing 23andMe, the company remains committed to preserving the privacy of customer data and continuing its operations. The company’s decision to file for bankruptcy and seek a buyer is a strategic move to secure its future and ensure that its mission of genetic education and exploration can continue. As the company goes through this transition, customers can take steps to protect their data and ensure that their genetic information is handled according to their preferences.
