Troubled Theranos to Lay Off 41 Percent of Employees

PALO ALTO, Calif. (The Mercury News/TNS) -

Blood-testing startup Theranos on Friday announced it will lay off 155 employees — about 41 percent of its workforce — the latest blow to hit the company facing multiple lawsuits, sanctions and other regulatory issues.

The company said the move is part of its ongoing restructuring, as it shifts focus to the commercialization of its miniLab testing platform.

“These are always the most difficult decisions,” Theranos wrote in a blog post, “however, this move allows Theranos to marshal its resources most efficiently and effectively.”

The recent layoffs come after Theranos eliminated 340 jobs and closed its clinical labs and Theranos Wellness Centers in October.

Theranos’ woes started in 2015 when a Wall Street Journal investigation alleged that the company’s signature Edison device, which was supposed to run blood tests using a finger prick’s worth of blood, was not working as promised. The company ended up recalling tens of thousands of blood test results, and federal regulators hit the company with sanctions banning Theranos founder Elizabeth Holmes from operating a lab for two years — a punishment the company has said it will appeal. And Theranos has been hit with multiple lawsuits accusing the company of misleading customers and investors about the accuracy of its blood tests.