Genetic testing service 23andMe has filed for Chapter 11 bankruptcy protection as it navigates an uncertain future. The California-based company, founded in 2006, has struggled financially since its initial public offering (IPO) in 2021.
As of March 23, 23andMe’s shares were worth less than a dollar, and the company faces challenges in finding a sustainable business model. Its primary revenue comes from direct-to-consumer sales of saliva collection kits for genetic testing, but growth has slowed, contributing to declining revenue and net losses.
The company cut 40% of its workforce last year and saw a significant decline in value since its IPO. In 2023, hackers accessed millions of user profiles and genetic information, further eroding trust. The firm’s CEO and co-founder, Anne Wojcicki, resigned last week.
Consumer advocates are urging users to delete their data to prevent it from being accessible to potential buyers, citing concerns over genetic information and its potential for exploitation. California Attorney General Rob Bonta expressed difficulties in deleting his own information, suggesting the website glitches were evidence of widespread action by customers.
As 23andMe reorganizes its debts, it remains to be seen whether the company can find a path forward and restore its financial stability.
Source: https://edition.cnn.com/2025/03/30/us/23andme-bankruptcy-data-hnk-dg/index.html