23andMe filed for Chapter 11 bankruptcy protection on March 23, 2025, reporting over $214.7 million in debt. Co-founder Anne Wojcicki has stepped down as CEO but remains on the board, potentially making an independent bid to purchase the company. You'll find the genetic testing firm secured $35 million in financing from JMB Capital Partners while implementing extensive layoffs. The company faces challenges from poor stock performance, a major data breach, and limited repeat customers. Further details reveal how your genetic data will be handled during this shift.
After nearly two decades as a pioneer in direct-to-consumer genetic testing, 23andMe filed for Chapter 11 bankruptcy protection on March 23, 2025. The company has struggled to maintain financial stability since going public in 2021, with its once-promising business model failing to generate sustainable revenue. The filing was made in the U.S. Bankruptcy Court for the Eastern District of Missouri.
Your genetic data will continue to be stored and protected during this shift, as the company plans to maintain normal operations throughout the bankruptcy proceedings. However, experts warn that your information could potentially be included in any future sale of company assets.
Your genetic data remains protected for now, but could be included in future asset sales during bankruptcy proceedings.
Anne Wojcicki, the company's co-founder and longtime CEO, has stepped down from her leadership role but remains on the board. The company reported total debts exceeding $214.7 million while listing assets of over $277.4 million in its bankruptcy filing. In a surprising twist, she's now considering making an independent bid to purchase the company herself. Her previous acquisition proposal was rejected by the board before the bankruptcy filing.
You've likely noticed 23andMe's stock performance plummeting over the past year, with shares now trading below $1 and facing potential delisting from NASDAQ. The company's financial troubles stem from several factors, including a fundamental business challenge: most customers only purchase a test kit once.
A major data breach in 2023 that affected 6.9 million users further damaged the company's reputation and finances. The settlement costs from this incident, combined with increased competition and failed attempts to diversify services, created a perfect storm of financial pressure.
If you're concerned about your genetic data, you can exercise your right to delete your information from 23andMe's database. The California Attorney General has emphasized that state privacy laws continue to protect your data rights during this process.
To maintain operations during bankruptcy, 23andMe has secured $35 million in financing from JMB Capital Partners. The company has already implemented extensive layoffs and is rejecting some leased properties as part of its cost-reduction strategy.
Any potential sale of the company will go through a court-supervised auction process designed to maximize value for stakeholders while ensuring regulatory compliance for the protection of sensitive genetic information.
Frequently Asked Questions
Will Customer DNA Samples Be Sold During Bankruptcy Proceedings?
While 23andMe has filed for Chapter 11 bankruptcy to facilitate asset sales, there's no explicit indication that your DNA samples will be sold.
The company has assured customers that there are no changes in how it stores, manages, or protects customer data during bankruptcy.
You can delete your genetic data through your account settings, which is particularly important for California residents protected under GIPA and CCPA, as recently emphasized by Attorney General Rob Bonta.
Can Customers Request Permanent Deletion of Their Genetic Data?
Yes, you can request permanent deletion of your genetic data from 23andMe.
Both California's Genetic Information Privacy Act and the California Consumer Protection Act grant you this right.
Access your account settings on the 23andMe website to initiate deletion, and you'll receive an email confirmation.
You can download your data beforehand for personal records.
Additionally, you can request destruction of your stored saliva sample through the same process.
Are There Refunds Available for Recently Purchased Kits?
Yes, refunds are available, but with specific timing restrictions.
If you purchased a test kit on or after March 23, you have 24 hours to request a refund.
For purchases made before March 23, the standard 30-day refund window from your purchase date still applies.
If you bought your kit from a third-party retailer, you'll need to follow that vendor's refund policy instead of 23andMe's direct policy.
How Will Ongoing Health Research Partnerships Be Affected?
Your ongoing health research partnerships with 23andMe are expected to continue despite the company's restructuring.
The company has stated that current collaborations remain a priority, though partners may need to adapt to organizational changes.
Your data sharing preferences remain intact, protected by existing privacy policies.
23andMe continues exploring strategic options for its therapeutics programs to preserve research value, maintaining its commitment to genetics research even during financial challenges.
Will Competitor Companies Honor 23andme Results for Transfers?
You'll likely see mixed responses from competitors regarding 23andMe result transfers.
Companies like AncestryDNA, FamilyTreeDNA, and MyHeritage already allow data uploads from other services, but they haven't announced specific policies for 23andMe's situation.
Transfer compatibility depends on technical differences between testing methodologies.
Some competitors may view this as an opportunity to acquire new customers, while others might hesitate due to legal complexities and data standardization challenges.
Watch for announcements from major testing companies in the coming weeks.
