23andMe, the troubled ancestry research company, continues to expand, raising questions about its business prospects and what might happen to its customers’ sensitive genetic testing data.
23andMe announced on Tuesday that this was the case eliminating 40% of its workforce as part of a restructuring plan. The move comes after the resignation of its entire board of directors in September. Its share price has since plunged, sparking speculation the company could be acquired by another buyer and sparking concerns among customers about the situation. security of their genetic information.
CEO Anne Wojcicki has said she intends to take the company private and is not considering third-party takeover proposals.
The customer data collected from its genetic testing tools is the company’s most valuable asset. Because 23andMe is not a health care company, health privacy laws do not apply, raising questions about what the company might choose to do with 23andMe’s personal genetic data. its 15 million users.
Under 23andMe’s current user agreement, users must opt-in to allow the company to share their DNA or personal data. The agreement states that if the company is acquired, customer data may be accessed or sold as part of such a transaction.
23andMe told CBS MoneyWatch correspondent Kelly O’Grady that while no sales are planned, the current confidentiality agreement would apply.
Meanwhile, at least 11 states have passed privacy laws that would require customers’ consent before their genetic data is transferred.
Still, experts say a new owner could change 23andMe’s privacy terms following a sale, which could force consumers to object to any attempts to share their data.
23andMe said about 80% of its customers consent to participate in the company’s research program, which it said has generated more than 270 peer-reviewed publications revealing new genetic insights into diseases. All data shared is anonymized and cannot be traced back to individual customers, according to the company.
However, users can take additional steps to protect their data, including deleting their 23andMe accounts, an automated and simple process.
“If at any time you no longer wish to participate in our services, you can delete your 23andMe account directly in your account settings,” the company says on its website.
This requires you to log into your account and submit a request. The company then sends you a confirmation of the data deletion request by email, which you must check.
“They will get rid of your sample, delete all your personal information and close the account,” O’Grady said.
23andMe, which went public in 2021, has struggled to turn a profit, with most buyers of its saliva-based testing kits needing to make only one purchase. The company reported a net loss of $667 million for its most recent fiscal year, more than double the previous year’s loss of $312 million.
23andMe recorded another loss in its quarterly results published on Tuesday. The company reported a net loss of $59.1 million for the second quarter of fiscal 2025, compared to a loss of $75.3 million for the same prior year.
Kelly O’Grady and
contributed to this report.
