Theranos Labs Lays of 40% of Workforce

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Laboratory scientists perform biochemical experiments in a Theranos R&D lab in Palo Alt

BY WENDY PARKULO / NEWS TEAMS

Theranos, a blood-testing start-up company founded by Stanford drop-out Elizabeth Holmes, just announced that they are downsizing their company and laying off 44% of their workforce affecting employees in Pennsylvania, Arizona, and California. Holmes released a statement saying that the company is planning on focusing on mini labs where “[their] ultimate goal is to commercialize miniaturized, automated laboratories capable of small-volume sample testing, with an emphasis on vulnerable patient populations, including oncology, pediatrics, and intensive care.” The mini labs will utilize robots to test blood samples. The company was once valued at over 9 billion dollars but they have faced many problems with accusations of secrecy with testing procedures. They have come under scrutiny in the past from The Wall Street Journal and The Washington Post among others leading to sanctions from the Food and Drug Administration culminating in Centers for Medicare and Medicaid Services (CMS) regulators banning Holmes for two years from owning or operating a blood lab which is still in the process of being appealed.

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