Theranos, the Silicon Valley blood-testing startup that has collapsed in a slew of scandals, is reportedly shedding nearly all of its closing staff.
The layoffs take Theranos’ headcount from about 125 to not up to two dozen as the corporate mounts a last-ditch effort to extend or steer clear of chapter, in line with The Wall Street Journal, which cited other folks accustomed to the subject.
The corporate had hired as many as 800 in past due 2015, in line with the paper.
The newest massacre comes a month after the SEC accused CEO Elizabeth Holmes and a most sensible lieutenant of defrauding buyers of greater than $700 million thru false claims about its era.
Holmes — a Stanford dropout who dressed solely in black turtlenecks as she talked up her blood-testing unicorn, which at one level boasted a valuation north of $nine billion — settled with the regulators in March for $500,000 whilst neither admitting to nor denying the accusations.
Holmes moreover agreed not to be a director or officer of a public corporate for 10 years, and to forgo benefiting from Theranos possession till $750 million is returned to buyers, in line with the consent order with the SEC.
Theranos and 34-year-old Holmes ran “an elaborate, yearslong fraud in which they exaggerated or made false statements about the company’s technology, business, and financial performance,” in line with the SEC.
The SEC claimed that Holmes misled buyers about her era, which Theranos stated used to be ready to check for sicknesses with just a pinprick, and extra cost effectively than what used to be commercially to be had, in line with the SEC agreement.
In fact, the corporate didn’t have any dependable era to check blood samples, and despatched blood to third-party firms for checking out, in line with the criticism.
The newest spherical of layoffs mark a last humiliation for Holmes, the now-disgraced Silicon Valley superstar who at one level used to be the youngest self-made girl billionaire with $four.five billion in internet price.