published on October 6, 2016 - 6:59 AM
Written by The Business Journal Staff

(AP) — Embattled blood testing company Theranos says it will shut down its clinical labs and wellness centers and lay off more than 40 percent of its full-time employees.


In an open letter released late Wednesday, Theranos CEO Elizabeth Holmes says the shutdowns “will impact approximately 340 employees in Arizona, California, and Pennsylvania.” Theranos has laboratory facilities in Newark, California, and Scottsdale, Arizona.

Holmes says the Palo Alto, California-based company will now focus on its miniLab portable blood-testing product.

The move comes nearly three months after federal regulators banned Holmes from owning or running a medical laboratory for two years. Theranos is appealing the ban, which stems from an investigation of the California facility. The probe followed reports by The Wall Street Journal in which former employees said the company’s tests were unreliable.


e-Newsletter Signup

Our weekly poll

Does your business need more federal coronavirus relief?

Loading ... Loading ...

Central Valley Biz Blogs

Popup
shares

3/5

Article views

remaining

Sign up icon

To continue website access to

TheBusinessJournal.com

please create a FREE account OR login here.

1/5

Article views

remaining

SKIP THE POP-UPS
For only $59 for one 1-year you will receive the Print edition along with EVERYTHING The Business Journal has to offer digitally, PLUS you will have unlimited 24- hour a day access to view articles at

TheBusinessJournal.com

Use Promo Code

*New Subscribers Only

Digital and Print

XX Days Remaining

until you can view 5 more free articles

Sign up icon

Want access? Subscribe now & save $20 OFF.

Use Promo Code

WEBSUB20

* NEW SUBSCRIBERS ONLY