Theranos will fire 340 employees — about 40 percent of its workforce — in California, Arizona and Texas, as well as shuttering all its clinical labs and Theranos Wellness centers, the company said in a statement today. The troubled start-up appears to be moving back to doing more research and development.
The development comes after a decision by regulators that Theranos chief executive officer Elizabeth Holmes will be banned from operating laboratories for two years. The sanctions were imposed by Centers for Medicare and Medicaid Services (CMS), which is responsible for supervising labs. With all its labs closed, Theranos may no longer be under CMS’s purview. The company declined to comment on whether CMS would continue to oversee its work.
Interesting decision to lessen their accountability.