23andMe, a prominent genetic testing company, has recently faced significant challenges, including bankruptcy, data breaches, and leadership changes.
Bankruptcy Filing and Financial Struggles
In March 2025, 23andMe filed for Chapter 11 bankruptcy protection, aiming to restructure its operations and seek potential buyers. Co-founder and CEO Anne Wojcicki resigned to facilitate efforts to take the company private. Despite partnerships with major firms like GSK and a customer base exceeding 15 million, 23andMe struggled with declining sales and profitability, leading to a valuation drop from $3.5 billion in 2021 to under $50 million.
Data Breach and Privacy Concerns
In October 2023, a data breach exposed personal information of approximately 6.9 million users, including profiles and ethnicity details. The breach was attributed to credential stuffing attacks, where hackers exploited reused usernames and passwords. This incident led to over 30 lawsuits and a $30 million settlement to address allegations of negligence and privacy violations.
Leadership Turmoil
Efforts to take 23andMe private faced internal opposition. In September 2024, all seven independent board members resigned, rejecting Wojcicki’s buyout proposal, citing concerns over the lack of a premium over the stock’s closing price.
Data Deletion Recommendations
Given the company’s financial instability and data security challenges, experts recommend that users consider deleting their genetic data from 23andMe. This measure can help mitigate potential privacy risks associated with the company’s uncertain future.