(Reuters) - Embattled blood-testing company Theranos Inc laid off most of its remaining workforce to preserve cash and avert or at least delay bankruptcy for a few more months, the Wall Street Journal reported on Tuesday, citing people familiar with the matter.
The layoffs take the company’s head count from about 125 employees to two dozen or fewer, the Journal reported.
Theranos and its chief executive, Elizabeth Holmes, agreed to settle “massive fraud” charges with the U.S. Securities and Exchange Commission last month.
Under the SEC settlement, Holmes was forced to relinquish her voting control over the company she founded, return millions of shares to the privately held company and pay a $500,000 penalty.
Holmes also agreed to be barred from serving as an officer or director of a public company for 10 years.
The company did not immediately respond to a request for comment.
Reporting by Akankshita Mukhopadhyay in Bengaluru; Editing by Anil D’Silva
Our Standards: The Thomson Reuters Trust Principles.