Palo Alto, Calif.-based blood testing startup Theranos laid off 155 employees Friday.
As the company pivots toward commercializing its miniLab testing platform, it is "re-engineering" operations and streamlining the organization, it said in a press release.
"[T]he company has identified a core team of 220 professionals to execute on its business plans…These are always the most difficult decisions; however, this move allows Theranos to marshal its resources most efficiently and effectively," the statement reads. The reduction shaves 40 percent off Theranos' total workforce.
In October, the company closed its blood-testing facilities, laying off 340 employees. This decision was also intended to amplify focus on the miniLab device. The Wall Street Journal reported that the latest Theranos workforce cuts leave the company with about 25 percent of the 790 employees it had in August.
The layoffs come amid growing legal costs, The Wall Street Journal also noted. Several lawsuits were filed against Theranos last year by both investors and consumers, and the company faces a federal criminal probe and an investigation by the Securities and Exchange Commission, to find out if the company misled investors by misrepresenting the readiness of its technologies and operations.
More articles on leadership and management:
The thing about organizational culture most people get wrong
AMGA selects 3 new board members
CHI St. Alexius cuts workforce by 2.7% amid rising costs