DNA Testing Company Files For Bankruptcy, Company Survival in Doubt

23andMe has filed for Chapter 11 bankruptcy and is now looking for a buyer. The move follows major leadership resignations and layoffs, raising questions about the future of the business—and your personal genetic information.

Key Facts:

23andMe filed for Chapter 11 bankruptcy to seek a court-supervised sale.
CEO Anne Wojcicki resigned but remains on the board of directors.
The company laid off 40% of its staff and ended its therapy development in late 2023.
In September 2023, all seven independent board members resigned over leadership disagreements.
The company never turned a profit despite a $6 billion valuation after going public in 2021.

The Rest of The Story:

23andMe built its brand around at-home DNA kits that offer health-related insights based on your genetic code.

The company promised users updates on disease risks, wellness advice, and ancestry tracing.

Despite early success and a public listing in 2021, the business struggled to stay afloat.

Attempts to shift from one-time kit sales to a subscription model didn’t meet expectations.

In response, the company cut costs by laying off staff and halting its therapeutic development pipeline.

CEO and co-founder Anne Wojcicki stepped down amid the turmoil, following a wave of board resignations.

Now, the company is preparing to sell itself in a court-supervised process, hoping to recover value for stakeholders.

An attorney general issued a chilling warning to the millions of customers of California-based 23andMe, urging them to 'delete your data' immediately as the company faces impending bankruptcy. pic.twitter.com/LHQri1UO5i

— Merissa Hansen (@merissahansen17) March 23, 2025

Commentary:

23andMe’s collapse looks like a textbook example of a trendy startup with no long-term plan.

The company had one major product: a DNA test.

That’s it.

Once you’ve taken the test, there’s little reason to keep paying for more.

Leadership also deserves scrutiny.

When every independent director resigns in protest, it signals deep problems at the top.

And the fact that Wojcicki is still on the board even after stepping down as CEO only fuels concerns about accountability.

From a business perspective, the failure to deliver on the subscription model shows poor strategic thinking.

Consumers weren’t convinced that ongoing wellness tips were worth paying for, especially when the initial results already gave them what they needed.

But the real issue now isn’t the company’s failure—it’s what happens to your DNA data.

23andMe has collected sensitive genetic details from millions of customers.

Now that the company is up for sale, is that data going with it?

There’s a good chance it will.

While the company may claim it values user privacy, the financial pressure of bankruptcy could override that.

Whoever buys 23andMe could get access to one of the largest private DNA databases in the world.

It’s a reminder that handing over personal data to trendy tech companies comes with real risks.

Once your genetic code is out there, you can’t get it back.

The Bottom Line:

23andMe’s bankruptcy reflects a flawed business model and years of questionable leadership decisions.

The company’s single-use product failed to support its long-term plans, and efforts to pivot fell short.

Now, with the business up for sale, customers should be asking tough questions about the fate of their most private data: their DNA.