According to latest publications the Silicon Valley firm Theranos Inc. has laid off almost all of its workers in one last effort to uphold cash and to ward-off liquidation at least for few more months.
Blood-testing company’s latest layoffs take the company’s workforce from 125 employees to almost 20. 3 years back, Theranos headcount was about 800.
It is reported that Theranos founder and chief executive Elizabeth Holmes revealed the news of job cuts in a meeting at Theranos’s offices in Newark, Calif.
This brutal announcement arrives less than a month after the company’s settlement of civil fraud charges with the SEC.
Reports said that Under the Securities and Exchange Commission settlement, Elizabeth Holmes was strained to give up her voting control over the business she started 15 years ago as a 19-year-old Stanford dropout, give back a big portion of her stock and pay a $500,000 fine. She also settled to be banned from acting as an officer or director in a public company for a decade.
However, both Ms. Holmes or Theranos didn’t admit or denied any type of unlawful activity.
Recently Ms. Holmes and her former No. 2, Sunny Balwani, remains under criminal investigation by the U.S. attorney’s office in San Francisco.
Meanwhile, Mr. Balwani has shorn of the SEC scam charges, filed in a California federal court, and hasn’t yet settled with the agency.
The company didn’t respond to a request for comment.