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Company Troubles Have Caused This Medical Giant To Rebrand

After a year filled with sanctions, federal investigations and failed partnerships, Theranos will close its clinical labs and wellness centers.

Silicon Valley medical giant Theranos announced it will close all of its clinical labs and wellness centers, laying off more than 40 percent of the company.

Theranos founder Elizabeth Holmes, once called the world's youngest self-made woman billionaire, published an open letter late Wednesday night explaining the closures.

Holmes said, "After many months spent assessing our strengths and addressing our weaknesses, we have moved to structure our company around the model best aligned with our core values and mission."

That means a complete turnaround from the previous lifeblood of Holmes' company — providing cheap, less painful and more convenient blood tests.

SEE MORE: Theranos Corrects 2 Years' Worth Of Flawed Blood Test Results

So why the drastic change?

The company, once valued at $9 billion, faced federal investigationsfailed partnerships and harsh sanctions this past year because of questions surrounding its products.

Theranos will now turn its attention to the Theranos miniLab platform, a new blood-testing device that still hasn't been approved by regulators.

The switch would make it easier for Holmes to keep running the company, even if she is banned from owning or operating labs for the next two years.

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