Theranos has another brutal round of layoffs in the pipeline.
After firing 340 employees this past October, in addition to closing clinical labs and consumer outlets, the blood-testing company said it will fire about 41% of remaining employees, according to Bloomberg. With 155 fewer positions, Theranos will have 220 employees to focus on developing its new blood-testing product, the miniLab.
“These are always the most difficult decisions; however, this move allows Theranos to marshal its resources most efficiently and effectively,” the firm said in a statement on Friday, according to Bloomberg.
The startup, founded by CEO Elizabeth Holmes, had claimed to be able to diagnose medical conditions with only drops of blood. But in recent months the company has been crippled by lawsuits and regulatory action after being accused of consumer fraud and flawed technology. The complaints cost Theranos its partnership with Walgreens, with Holmes herself getting banned from operating a lab.
