Theranos cutting hundreds of jobs as it shutters labs

theranosIn an open letter to shareholders, Theranos CEO Elizabeth Holmes informed that it is closing its clinical labs and Wellness Centers causing reduction of 340 employees in Arizona, California and Pennsylvania.

The startup has been through a series of heavy setbacks recently. It’s under investigation by multiple federal agencies after doubts emerged about its methods. Holmes was banned from owning or operating a laboratory for two years.

Holmes said the company will be focusing on its miniLab platform which can conduct diagnostic tests on small amounts of blood.

Company’s new executive team is working to get clearance from the FDA.

The firm was formed by Holmes at age 19, positioned itself as a provider of cheaper, more efficient alternatives to traditional medical tests. It said it could process up to 70 lab tests on just a few drops of blood.