Company chief Anne Wojcicki didn't have definitive explanations for the shrinking sales in a chat with CNBC, but did speculate that privacy was "top of mind" for customers and might have been a factor. Cold cases like the Golden State Killer appear to have been solved using online DNA databases -- there might be a fear of sensitive genetic info falling into the wrong hands. Wojcicki also suspected that fear of a US recession might lead people to cut back on unnecessary expenses, and a home DNA test could easily be one of the first things to go.

The company isn't the only one facing trouble. Veritas Genetics closed its US business in late 2019, while Illuminia warned that the entire market was down last summer after witnessing a drop in demand for its DNA sequencing machines. In that regard, 23andMe is acknowledging the reality that DNA testing isn't as hot a market as it was in previous years.