Photo: AP

In an open letter to investors on Wednesday, Theranos founder Elizabeth Holmes announced that the company was shuttering all of its labs and wellness centers, “impacting” around 340 employees—presumably by putting them out of work.

“We are profoundly grateful to these team members, many of whom have devoted years to Theranos and our mission, for their commitment to our company and our guests,” wrote the CEO of the beleaguered blood-testing startup.

Unfortunately for those devoted team members, federal authorities banned Holmes from operating a lab for two years this summer due to allegedly unsafe practices under her leadership. Theranos, given a choice to keep either its laboratories or its founder, evidently picked the latter.

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In Wednesday’s letter, Holmes said that the company will now focus on developing its new miniLab device, a move that allows her to remain at Theranos if the sanctions (which are currently being appealed) are upheld.

That side of the business, however, has its own problems: Last month, Theranos announced it was withdrawing an emergency application for a miniLab Zika test after the FDA discovered evidence of improper patient safeguards.

“After many months spent assessing our strengths and addressing our weaknesses, we have moved to structure our company around the model best aligned with our core values and mission,” wrote Holmes. “I look forward to sharing more with you as we progress along the way.”

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[Rebecca Robins]