Theranos Has Seen Better Days – Company Closes Its Labs and Lays Off 40 Percent of Staff
Theranos, the company that was once valued at $9 billion has been forced to close its labs and bear in mind that this isn’t a temporary closure. The little step will cause a significant number of people to lose their jobs.
Along With Its Labs and Wellness Centers, Theranos Has Also laid Off a Total of 340 Employees
Not long, we reported that Theranos CEO Elizabeth Holmes was not allowed to operate a lab for 2 years, after US regulators decided to bring down the hammer. Holmes stated the following in the company’s latest blog post:
“After many months spent assessing our strengths and addressing our weaknesses, we have moved to structure our company around the model best aligned with our core values and mission.
We have decided to close our clinical labs and Theranos Wellness Centers, which will impact approximately 340 employees in Arizona, California, and Pennsylvania. We are profoundly grateful to these team members, many of whom have devoted years to Theranos and our mission, for their commitment to our company and our guests.
We will return our undivided attention to our miniLab platform. 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.”
One of the devices that Theranos was expected to use depended on FDA approval. Unfortunately, after finding out that the company didn’t use proper patient safety protocols, the FDA denied Theranos that approval. It appears that there are regulatory obstacles the company is going to have to scale, but for the moment, things are looking quite dicey.
In addition to shutting down its labs and wellness centers, the company is now facing numerous lawsuits, was forced to shut down its California lab facility, and perhaps one of the biggest setbacks for the company was that it lost its main partner Walgreens. Though Holmes has stated that it was appealing the sanctions, that plan hasn’t been going well for her or for the company, which will leave the firm’s future open to interpretation. According to the details of the blog post, the company states that it will return its undivided attention to its miniLab platform, but as of right now, it has a mountain to climb.
Most of the company’s problems stem from regulatory issues. Perhaps Elizabeth Holmes’ business acumen did not foresee the ramifications of going through the fine print of a country’s laws and regulations before starting Theranos. She might be a very gifted individual, but the vision of running a company can often force the person to ignore other factors.
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