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Theranos is laying off 41% of its staff

Lydia Ramsey
Elizabeth Holmes AACC
Elizabeth Holmes AACC

(Theranos CEO Elizabeth Holmes at the AACC conference in August 2016.AACC/YouTube)

Theranos is going through its second round of layoffs.

The blood-testing company confirmed it is laying off 41% of its staff, Bloomberg first reported.

In October, Theranos closed its clinical labs, letting go of about 340 people. This new round will cut another 155 people, with 220 remaining.

The company confirmed that Elizabeth Holmes will stay on as CEO.*

The remaining staff will focus on the company's miniLab technology. The technology debuted in August as part of Theranos' attempt to be what Holmes called a "decentralized" lab, meaning you could process the test without shipping it to a brick-and-mortar lab.

Here's the company's statement:

"Today, Theranos Inc. announced further re-engineering of the company's operations as it works towards commercialization of the miniLab testing platform and its related technologies. In the streamlined organization, teams have been aligned to meet product development, regulatory, and commercial milestones.

"As a result, the company has identified a core team of 220 professionals to execute on its business plans, and informed 155 employees that their positions have been eliminated. These are always the most difficult decisions; however, this move allows Theranos to marshal its resources most efficiently and effectively.

"The restructuring follows a period of significant change at the company that has included the building out of its executive team with substantial additional regulatory, compliance, and operational expertise."

The embattled company's saga came into the spotlight in October 2015 after The Wall Street Journal published an investigation that questioned the accuracy of Theranos' blood test. In 2016, Theranos' northern California location was shut down, and Holmes was barred for two years from running a clinical lab.

The company is now facing lawsuits from investors, patients, and its once partner Walgreens, which ended its relationship with Theranos in June 2016 and is accusing Theranos of breaching its contract.

*An earlier version of this story misstated that Theranos had sold its headquarters. The building's landlord had changed, but Theranos is still leasing the building.

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