Theranos to Lay Off More Than 40% of Workers

Industries Reuters

Theranos Chief Executive Officer Elizabeth Holmes speaks on stage at the Glamour Women of the Year Awards where she receives an award, in the Manhattan borough of New York November 9, 2015. REUTERS/Carlo Allegri

Theranos said it will lay off about 340 workers, or about 43 percent of its full-time employees, as it closes its clinical labs and Theranos Wellness Centers, signaling a withdrawal from the consumer blood-testing business.

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The move impacts workers in Arizona, California, and Pennsylvania, Theranos Chief Executive Elizabeth Holmes said in a letter published on the company's website on Wednesday. 

Theranos, which employs around 790 people full time, had earlier withdrawn a request to the U.S. Food and Drug Administration for emergency clearance of its Zika virus blood test.

Theranos ran into trouble after the Wall Street Journal published a series of articles beginning last October suggesting its blood-testing devices were flawed and inaccurate.

 

(Reporting by Gaurika Juneja in Bengaluru; Editing by Bill Rigby)