TIME Companies

Theranos Will Close Labs and Lay Off Hundreds of Employees

Elizabeth Holmes speaks on stage during the closing session of the Clinton Global Initiative 2015 in New York City on Sept. 29, 2015.
JP Yim—Getty Images Elizabeth Holmes speaks on stage during the closing session of the Clinton Global Initiative 2015 in New York City on Sept. 29, 2015.

The company will focus on rebuilding after several regulatory investigations

Blood-testing startup Theranos announced Wednesday that it will close its clinical labs and lay off hundreds of employees.

Theranos CEO Elizabeth Holmes wrote in a statement that the company will close facilities in Pennsylvania, Arizona and California and focus on rebuilding after multiple regulatory investigations into its practices. The move will affect some 340 employees.

“We have a new executive team leading our work toward obtaining FDA clearances, building commercial partnerships, and pursuing publications in scientific journals,” Holmes wrote in a statement on the Theranos website.

Holmes and Theranos developed what it claimed was the first blood test that could diagnose diseases from a single drop of blood, but an October 2015 Wall Street Journal report citing former Theranos employees questioned the accuracy of the company’s testing device.

The company announced in April that it was under investigation by the U.S. Securities and Exchange Commission and the U.S. Attorney’s Office for the Northern District of California. Theranos has also faced probes from the Food and Drug Administration, the Centers for Medicare and Medicaid Services and two state health departments.

Tap to read full story

Your browser is out of date. Please update your browser at http://update.microsoft.com


YOU BROKE TIME.COM!

Dear TIME Reader,

As a regular visitor to TIME.com, we are sure you enjoy all the great journalism created by our editors and reporters. Great journalism has great value, and it costs money to make it. One of the main ways we cover our costs is through advertising.

The use of software that blocks ads limits our ability to provide you with the journalism you enjoy. Consider turning your Ad Blocker off so that we can continue to provide the world class journalism you have become accustomed to.

The TIME Team