DNA testing company 23andMe has filed for bankruptcy and is seeking new ownership after its CEO resigned following multiple failed takeover attempts.

The US-based firm, which has used saliva samples to identify more than 15 million customers' ancestry and potential predispositions to health issues, cut around 40 per cent of its workforce last year and has seen weakening demand since a 2023 data breach.

Customers have been told their personal data “remains protected” as the company seeks a buyer for a court-supervised sale.

Company chair Mark Jensen said 23andMe was “committed to continuing to safeguard customer data and being transparent about the management of user data going forward”.

“Any buyer of 23andMe will be required to comply with applicable law with respect to the treatment of customer data,” the company said in an open letter to customers on Monday, US time.

Users’ access to their accounts and genetic data would remain unchanged, and the business would continue operating during the sale process, it said.

Can I delete my 23andMe data?

Customers of 23andMe can choose to delete their data and accounts, but research labs in which the anonymised data has already been used may be legally required to keep it for up to three years, before it is deleted.

Customers have also been advised to download their data before requesting the deletion of their accounts.

California-based 23andMe said customers who removed their accounts would have their genetic samples destroyed and would no longer have their personal information used in future research projects, but this information could not be removed from research already completed or underway.

23andMe has reportedly made dozens of deals with pharmaceutical and biotech companies in recent years, including giving British drugmaker GSK access to its database.

Some customer data may have also previously been shared with contractors involved in shipping, sample processing and storage, customer service, IT services, and marketing, according to 23andMe’s website.

The company said it would “retain limited information about you, including records of [a] deletion request, and other information as required by law and otherwise described in our Privacy Statement”.


More than 15 million people have used 23andMe's DNA testing kits, according to the company. Photo: Shutterstock

Just days before 23andMe declared bankruptcy, California Attorney-General Rob Bonta used a consumer alert on Friday to remind local customers of their right to request their personal information be removed, and cited concerns over “the trove of sensitive consumer data 23andMe has amassed”.

Hackers exposed the personal data of nearly seven million 23andMe customers in 2023, in a blow to the company’s reputation.

The firm agreed to a settlement worth around $48 million ($US30 million) in a 2024 class action lawsuit related to the breach.

Outgoing CEO pushes private takeover

23andMe co-founder and CEO Anne Wojcicki resigned from the company on Monday, just weeks after her latest acquisition proposal was rejected by a board committee.

She will be replaced by chief financial officer Joe Selsavage on an interim basis but would remain on the 23andMe board, the company said.

Wojcicki said she resigned as CEO so she could be “in the best position” as an independent bidder as she attempted to purchase the company and take it private.

“As I think about the future, I will continue to tirelessly advocate for customers to have choice and transparency with respect to their personal data, regardless of platform,” she wrote on social media.

“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.”

While 23andMe said it had secured around $56 million ($US35 million) in financing for its transition, its share price has fallen around 99 per cent since going public in 2021.

At its peak, 23andMe’s value reached around $9.5 billion ($US6 billion) four years ago.

Wojcicki’s latest reported offer of 41 US cents per share now valued the company at around $17.5 million ($US11 million).