Test results using the company's Edison machine were found to be inaccurate by regulators from the Centers for Medicare and Medicaid Services, forcing Theranos to shut down its California lab facility after the company's license to operate it was revoked in July previous year.
Theranos will lay off 41 percent of its workforce, the company said on Friday.
Walgreens representatives said that Theranos misled the company about its technology and that it failed to accomplish the goals that the two companies have established in a contract.
These new layoffs also follow another round of cuts in October, which saw the loss of 340 employees, as well as the announcement that its testing labs would close. "This is not, you know, 'I'm going to go to this company and try it for two years and then go somewhere else, ' and so on and so forth", she said.
Qualcomm to Invest in SoftBank's New Technology Fund
President-elect Donald Trump shakes hands with Son Masayoshi, chief executive officer and founder of SoftBank Group Corp. SoftBank rose 2.1% on Japan's first trading day of the year, broadly in line with Nikkei's 1.8% gain.
The remaining 220 employees "will focus on developing a new product, a tabletop blood testing product called the miniLab".
According to Palo Alto-based Theranos, further re-engineering of the company's operations are needed as it works towards commercialization of its miniLab testing platform and its related technologies.
"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", Holmes said.