Embattled blood-testing company Theranos is laying off 155 people, about 41 percent of its workforce.



The start-up will let go of its workers after months of regulatory setbacks as well as lawsuits and scrutiny. That would leave 220 workers to focus on its business plans, primarily its blood testing product called the miniLab.



"These are always the most difficult decisions; however, this move allows Theranos to marshal its resources most efficiently and effectively," Theranos said in a statement.



Bloomberg first reported the news on Theranos. CNBC has reached out to Theranos for further comment.



In October, the company let go of 340 workers and said it would close its clinical labs and Wellness Centers. The following month, Walgreens ended its partnership with Theranos and filed a lawsuit against the company for $40 million for breach of contract.

Theranos was founded by CEO Elizabeth Holmes in 2003 to develop a blood-testing device that would deliver quicker results using only a drop of blood.



The start-up has been under fire since a series of reports by The Wall Street Journal suggested the blood-testing company's testing devices were flawed. Theranos has disputed the claims made by the newspaper.