23andMe files for bankruptcy, CEO steps down: What customers should know

23andMe has filed for Chapter 11 bankruptcy protection to help the genetic testing company facilitate a sale amid years of financial issues. 

The California-based 23andMe, which is best-known for its at-home, gene-testing kits that give insights into a customer’s ancestry and traits, has struggled to find a profitable business model since going public.

Here’s what customers should know:

23andMe bankruptcy, CEO resigns

What we know:

23andMe announced on Sunday that it filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Eastern District of Missouri "to facilitate a sale process to maximize the value of its business." The company said it will continue operating its business  normally throughout the sale process. 

Anne Wojcicki, the company’s co-founder and CEO, also announced early Monday on X that she had resigned in order to be "in the best position to pursue the company as an independent bidder."

FILE - In this photo illustration, a 23andMe logo seen displayed on a smartphone and in the background. (Photo Illustration by Avishek Das/SOPA Images/LightRocket via Getty Images)

The backstory:

23andMe went public in 2021 and has struggled to find a profitable business model since — particularly with most buyers of its saliva-based testing kits only needing to purchase them once. The company reported a net loss of $667 million for its last fiscal year, more than double the loss of $312 million for the year prior.

23andMe data: Should customers delete their information?

Dig deeper:

News of the company’s financial struggles have prompted concerns from customers about the future of their sensitive information. On Friday, prior to the announcement, California Attorney General Rob Bonta also issued a consumer alert to 23andMe customers reminding customers in the state "of their right to direct the deletion of their genetic data under the Genetic Information Privacy Act (GIPA) and California Consumer Protection Act (CCPA)." 

In a request for comment, 23andMe directed FOX Television Stations to its announcement, which confirmed there would be "no changes to the way the company stores, manages, or protects customer data."

What they're saying:

Mark Jensen, chair and member of 23andMe’s Special Committee of the Board of Directors, said in a statement that the company is "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."

How to delete 23andMe data

What you can do:

The California attorney general’s warning also included information on how consumers can delete their personal information, if they still choose to do so:

• Log into your 23andMe account on their website.
• Go to the "Settings" section of your profile.
• Scroll to a section labeled "23andMe Data" at the bottom of the page.
• Click "View" next to "23andMe Data"
• Download your data: If you want a copy of your genetic data for personal storage, choose the option to download it to your device before proceeding.
• Scroll to the "Delete Data" section.
• Click "Permanently Delete Data."
• Confirm your request: You’ll receive an email from 23andMe; follow the link in the email to confirm your deletion request.