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Just two years after the blood-testing company Theranos was valued at $9 billion, the company has announced that it will close its clinical labs and blood-test centers and cut more than 40 percent of its staff.

 

Theranos says it is shifting its focus to a product it calls the miniLab, with the goal of commercializing “miniaturized, automated laboratories.”

 

The company once seemed poised to revolutionize the blood-testing industry, with low-cost tests that used only a few drops of blood. But then, “the government began to scrutinize the company after experts found that the results of the blood tests were inaccurate,” as NPR’s Laura Sydell has reported.

 

The company has appealed the ban against Holmes, which has not yet been imposed, according to The Wall Street Journal.

 

In a letter to stakeholders Wednesday, Holmes said the company has decided to “close our clinical labs and Theranos Wellness Centers, which will impact approximately 340 employees in Arizona, California and Pennsylvania.” Theranos said it had 790 full-time employees as of Aug. 1.

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