Elizabeth Holmes’ struggling startup Theranos will lay off 155 workers, or roughly 41 percent of its staff, according a new report from Bloomberg. The remaining 220 employees “will focus on developing a new product, a tabletop blood testing product called the miniLab.”
The news was confirmed in a press release from Theranos. “These are always the most difficult decisions; however, this move allows Theranos to marshal its resources most efficiently and effectively,” the company said, adding that the layoffs “[follow] a period of significant change at the company.”
That, to put it mildly, is an understatement. Theranos has been hit with controversy after controversy, including a series of reports in the Wall Street Journal alleging that there were serious issues with the company’s blood testing practices. Last April, federal officials opened a criminal investigation into whether the company had “misled investors about the state of its technology and operations.” And in July, Holmes was banned from the blood-testing industry for two years.
These new layoffs also follow another round of cuts in October, which saw the loss of 340 employees, as well as the announcement that its testing labs would close.
And just like that, Theranos’ 2017 got a whole lot worse.