March 24, 2025 Genetic testing company 23andMe – which once had high-profile endorsements from the likes of Oprah Winfrey, Eva Longoria, and Snoop Dogg has filed for Chapter 11 bankruptcy protection to facilitate its sale after years of financial struggles. CEO and co-founder Anne Wojcicki has resigned but will remain on the company’s board.
Founded in 2006, 23andMe gained prominence with its direct-to-consumer DNA testing kits, allowing individuals to explore their ancestry and health predispositions. The company’s name reflects the 23 pairs of chromosomes in human cells.
Despite early success and a peak valuation of $6 billion, 23andMe faced challenges including regulatory scrutiny, privacy concerns, and a significant data breach in 2023 affecting nearly 7 million users. These issues, coupled with declining demand and financial losses, led to workforce reductions and strategic shifts.
In January 2025, the company announced the need for additional liquidity and explored strategic alternatives, including a potential sale and even taking the company private. The March 23, 2025, bankruptcy filing listed assets and liabilities between $100 million and $500 million.
As 23andMe undergoes restructuring, concerns have arisen regarding the security of the genetic data of its 15 million customers. California Attorney General Rob Bonta has advised users to delete their genetic data from the company’s databases to protect their sensitive information. Prof Carissa Veliz – author of Privacy is Power earlier told the BBC that this is arguably the most valuable personal data you have. She told the BBC: interviewer:
“If you gave your data to 23andMe, you also gave the genetic data of your parents, your siblings, your children, and even distant kin who did not consent to that,”
