23andMe Files for Bankruptcy: A Challenging Future Ahead
On March 23, 2024, genetic testing pioneer 23andMe initiated a bankruptcy protection filing, marking a significant turn in the company’s trajectory. Concurrently, it was announced that Anne Wojcicki, the company’s founder and CEO, would resign from her position effective immediately.
This restructuring effort follows a troubling warning issued by California’s Attorney General on March 21, 2025, advising customers to erase their personal data from 23andMe’s platform due to its “reported financial distress.” This caution comes on the heels of a severe data breach in 2023, which compromised the personal details of almost seven million clients.
In a related development, I. Glenn Cohen, a legal expert and Faculty Director at Harvard Law School, highlighted a critical issue concerning user data protection in his article for The Harvard Gazelle published March 20, 2025. He pointed out that genetic databases like those maintained by 23andMe do not receive protection under the Health Insurance Portability and Accountability Act (HIPAA).
HIPAA was enacted in 1996 with the intent to safeguard patient health information from unauthorized disclosures. Cohen elaborated on this vulnerability by stating:
“The problem is that HIPAA’s definition of covered entities and business associates means that when you have provided information, including your genetic data, not to a hospital system, not to a physician, but to a direct-to-consumer company like 23andMe, you are not covered by HIPAA. You are treated by the law essentially as a consumer, not as the patient.”
Steps to Delete Your Data from 23andMe
Following the Attorney General’s warning, Rob Bonta urged 23andMe users to take decisive action by deleting their genetic data. He emphasized California’s stringent privacy laws, which empower consumers to control their genetic information:
“California has robust privacy laws that allow consumers to take control and request that a company delete their genetic data. Given 23andMe’s reported financial distress, I remind Californians to consider invoking their rights and directing 23andMe to delete their data and destroy any samples of genetic material held by the company.”
The California Department of Justice provides a clear guide for users wishing to remove their data from the 23andMe database. To permanently delete your information, follow these steps:
- Log into your 23andMe account.
- Navigate to “Settings.”
- Click “View”in the “23andMe Data”section.
- Select “Download”if you want to save a copy of your data.
- Choose “Permanently Delete Data”under the “Delete Data”options.
- Confirm the deletion via the link sent to your registered email.
In addition to this process, users can destroy their saliva samples and associated DNA data by adjusting their preferences found under the “Settings”tab. Those who have previously agreed to the use of their genetic data for research may also revoke their consent through the “Research and Product Consents” section.
Workforce Reduction and Financial Challenges
In November 2024, 23andMe announced a staggering staff reduction of nearly 40%, affecting around 200 employees. This move came shortly after the company had settled a lawsuit related to its 2023 data breach. A once-prominent player in the DNA testing market, the company had seen a significant increase in popularity in 2021, attracting endorsements from high-profile figures such as Snoop Dogg and Oprah Winfrey. However, its stock value plummeted by over 70% throughout 2024.
As part of the company’s efforts to manage its challenges, Wojcicki stated:
“We are taking these difficult but necessary actions as we restructure 23andMe and focus on the long-term success of our core consumer business and research partnerships.”
Following the bankruptcy announcement, Wojcicki will remain on the board but step down as CEO, with finance chief Joe Selsavage stepping in as interim CEO. In a press release, the company reiterated its commitment to safeguarding customer data:
“We want to thank our employees for their dedication to 23andMe’s mission. We are committed to supporting them as we move through the process. In addition, we are committed to continuing to safeguard customer data and being transparent about the management of user data going forward, and data privacy will be an important consideration in any potential transaction.”
Looking ahead, 23andMe plans to engage in a “court-supervised sale process”to navigate its operational and financial difficulties. As the situation unfolds, customers should remain vigilant regarding their rights and the management of their sensitive genetic information.