23andMe co-founder Anne Wojcicki, shown in 2017, has stepped down from her role as CEO but will remain on the board of directors as the company seeks Chapter 11 reorganization.
Michael Macor/The Chronicle
23andMe, the Bay Area genetic testing company that once enjoyed a $6 billion valuation, has filed for Chapter 11 bankruptcy protection in Missouri federal court.
The filing, made Sunday night, marks a dramatic turn for the company, which has faced mounting financial difficulties and operational challenges.
Alongside the bankruptcy proceedings, CEO Anne Wojcicki has stepped down from her role immediately but will remain on the board of directors. Joseph Selsavage, the company’s chief financial officer, will serve as interim CEO.
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“We have had many successes but I equally take accountability for the challenges we have today,” Wojcicki wrote in a post on X early Monday. “There is no doubt that the challenges faced by 23andMe through an evolving business model have been real, but my belief in the company and its future is unwavering.”
In the wake of these challenges, California Attorney General Rob Bonta issued a consumer alert on Friday, urging residents to consider deleting their genetic data from the company’s platform.
Citing concerns over 23andMe’s financial instability and the sensitive nature of its genetic database, Bonta recommended that customers use their rights under California’s privacy laws to delete their data and have any stored samples destroyed.
“California has robust privacy laws that allow consumers to take control and request that a company delete their genetic data,” Bonta said in a statement. “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 23andMe logo is seen outside the company’s headquarters in Sunnyvale in 2022, before its relocation to South San Francisco. The biotechnology company is seeking Chapter 11 bankruptcy reorganization.
Laura Morton/Special to The Chronicle
Once a pioneer in at-home DNA testing, 23andMe gained fame for its ability to provide customers with insights into their genetic profiles and family histories.
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After merging with a special purpose acquisition company in 2021, the company went public, but its stock has since plummeted. With a market capitalization now estimated at just $25 million, 23andMe has faced difficulties in generating sustainable revenue, with its research and therapeutics efforts failing to take off.
The company, based in South San Francisco, also suffered a significant cybersecurity breach last year, exposing the personal data of millions of customers.
In response, 23andMe spokesperson Jimmy Asci assured customers Monday that their privacy remains a priority, noting that the company follows strict security protocols and complies with state and federal regulations.
He emphasized that customers have the ability to delete their accounts at any time, with the data being permanently erased once the request is confirmed.
For those concerned about their privacy, the process to delete data and revoke consent for research participation can be done through the 23andMe account settings page.
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If you’re a 23andMe user and wish to delete your account or personal data due to these concerns, here’s how you can proceed.
To remove genetic data from 23andMe:
- 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.
To destroy your 23andMe test sample:
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If you previously opted to have your saliva sample and DNA stored by 23andMe, but want to change that preference, you can do so from your account settings page, under “Preferences.”
To revoke permission for your genetic data to be used for research:
If you previously consented to 23andMe and third-party researchers to use your genetic data and sample for research, you may withdraw consent from the account settings page, under “Research and Product Consents.”
According to Bonta’s alert, by following these steps, you can ensure your personal data is erased and that your genetic information is no longer stored or used by 23andMe.
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“Our foundation was the trust and respect of our customers, and they were always the guiding light on how we made decisions,” Wojcicki said. “If I am fortunate enough to secure the company’s assets through the restructuring process, I remain committed to our long-term vision of being a global leader in genetics and establishing genetics as a fundamental part of healthcare ecosystems worldwide.”
