Theranos Shutting Down

Theranos, the beleaguered Palo Alto California laboratory that promised technology capable of running 30 tests on a single drop of blood, says it will close all of its labs and release 340 employees.

The announcement, posted on its web site October 3, comes after months of federal investigations and the banning of CEO Elizabeth Holmes from running a laboratory for two years. According to a letter to Theranos' stakeholders, "We have decided to close our clinical labs and Theranos Wellness Centers, which will impact approximately 340 employees in Arizona, California and Pennsylvania." The layoffs constitute 40 percent of its workforce.

The Theranos ship ran aground last year after federal regulators found multiple compliance issues, proficiency testing irregularities, and the use of unapproved medical devices as collection containers. Phlebotomy Today-STAT! reported Theranos' woes in the November issue.

According to the announcement, the company is shifting its focus to their miniLab, an instrument through which it hopes to commercialize miniature, automated laboratories.

Read Theranos' letter to stakeholders.

More information.