23andMe, once a trailblazer in consumer DNA testing, has filed for Chapter 11 bankruptcy following years of financial turmoil, leadership changes, and concerns over the security of its customers’ genetic data. 

Santa Clarita residents who have used 23andMe’s services should be particularly vigilant, as the company’s financial instability raises questions about the security of their DNA information. 

With 15 million customers who have submitted DNA samples hoping to learn about ancestry and health, the potential sale of 23andMe’s assets, including genetic data, has become a pressing concern.

Key Factors Leading to 23andMe’s Bankruptcy

One of the most damaging blows to 23andMe came in 2023, when a cyberattack compromised the genetic and personal data of nearly 7 million users. 

The breach not only triggered multiple lawsuits but also severely damaged the company’s reputation, raising concerns about the security of sensitive DNA information, according to the Associated Press.

As part of the bankruptcy announcement, CEO Anne Wojcicki has resigned. 

In a statement on social media, Wojcicki said that she resigned as CEO to be “in the best position” as an independent bidder is possibly considering purchasing the company.

“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,” she later added.

Once trading at over $300 per share, 23andMe’s stock has plummeted to under $1, reflecting its deteriorating financial position. 

The company has struggled to regain investor confidence, leading to aggressive cost-cutting measures.

In November 2024, 23andMe laid off 40% of its workforce or over 200 employees in an effort to restructure operations and mitigate financial losses, according to the Associated Press. 

Despite these efforts, 23andMe was unable to reverse its downward trajectory.

Bankruptcy Filing and Future Implications

On March 23, 2025, 23andMe initiated voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the Eastern District of Missouri. 

The filing is intended to facilitate a sale process aimed at maximizing the value of the business, according to a statement released by the company.

23andMe has assured customers that its operations will continue as usual and that there will be no changes to how customer data is stored, managed, or protected during the bankruptcy process.

What Santa Clarita Residents Should Know

For residents of Santa Clarita, the bankruptcy of 23andMe raises concerns about the security of their personal genetic information. 

Given the large number of Southern Californians who have used the service, local consumers are encouraged to take proactive steps to safeguard their data.

California Attorney General Rob Bonta has issued a consumer alert reminding residents of their right to delete their genetic data under the Genetic Information Privacy Act (GIPA) and the California Consumer Privacy Act (CCPA).

“California has robust privacy laws that allow consumers to take control and request that a company delete their genetic data,” said Attorney General Bonta. “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.”

Steps Santa Clarita Residents Can Take to Protect Their Genetic Information

If you are a Santa Clarita resident and have used 23andMe’s services, consider the following steps to ensure your genetic data remains secure:

• Delete Your Data: Log into your 23andMe account, go to “Settings,” scroll to “23andMe Data,” and click “Permanently Delete Data.” You will receive a confirmation email to complete the process.
• Destroy Your DNA Sample: If you previously opted to have your saliva sample stored, you can change your preference in your account settings under “Preferences.”
• Revoke Research Consent: If you consented to 23andMe or third-party researchers using your genetic data, you can withdraw consent from the “Research and Product Consents” section in your account settings.

Under GIPA, California consumers have the right to request the deletion of their genetic data and biological samples, as well as revoke prior consent for research. 

The CCPA also grants consumers the right to delete personal information, including genetic data, from businesses that collect it.

KHTS FM 98.1 and AM 1220 is Santa Clarita’s only local radio station. KHTS mixes in a combination of news, traffic, sports, and features along with your favorite adult contemporary hits. Santa Clarita news and features are delivered throughout the day over our airwaves, on our website and through a variety of social media platforms. Our KHTS national award-winning daily news briefs are now read daily by 34,000+ residents. A vibrant member of the Santa Clarita community, the KHTS broadcast signal reaches all of the Santa Clarita Valley and parts of the high desert communities located in the Antelope Valley. The station streams its talk shows over the web, reaching a potentially worldwide audience. Follow @KHTSRadio on Facebook, Twitter, and Instagram.