Theranos Layoffs: Theranos, Inc. has recently revealed that it will close its blood testing facilities, laying off more than 40% employees.
Read CEO Elizabeth Holmes' letter announcing new company focus at Theranos: https://t.co/o3ATlSvEti
— Theranos (@theranos) October 5, 2016
Behind the Theranos Layoffs
The bold restructuring efforts signify Theranos retreating from its core business of offering affordable blood testing services following reports of its shortcomings in its business strategy. Accordingly, more than 300 individuals will lose their jobs in Arizona, California, and Pennsylvania.
The Theranos layoffs and facility closures will enable the company speed up its shift to a new core strategy, which will primarily include products that can be commercialized outside its facilities.
One of the new products that the company is currently working on is miniLab, a blood testing device that has the size of a printer. Accordingly, it can provide accurate blood test results even from a few drops of sample.
“Our ultimate goal is to commercialize miniaturized, automated laboratories capable of small-volume sample testing, with an emphasis on vulnerable patient populations, including oncology, pediatrics, and intensive care,” said Elizabeth Holmes, Theranos CEO, boasting the company’s undivided attention on the new blood testing device.
People familiar with the matter have suggested that miniLab succeeds Edison, a blood testing device that was introduced in the company’s laboratories three years ago.
Embattled with Sanctions
Theranos had received many regulatory sanctions in the past that hurt its reputation.
Recently, it has applied for the emergency clearance of a Zika virus blood test. Nonetheless, Theranos has immediately withdrawn the application after the regulators had discovered that no appropriate patient safeguards were involved in the study.
Around 2014, the company has teamed up with Walgreens Boots Alliance Inc (NASDAQ:WBA) to collect blood samples from the latter’s retail stores for testing at its laboratories.
However, later on Theranos has invalidated all blood test results from 2014 through 2015 after accuracy concerns arose.
It is still uncertain whether these Theranos layoffsand facility shutdowns are what will directly lead to the company’s recovery from serious issues.
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