Theranos Inc., the embattled blood-testing company, will fire about 41 percent of its employees after months of regulatory setbacks, lawsuits, and scrutiny.

The Silicon Valley startup will eliminate 155 positions, leaving 220 employees who will focus on developing a new product, a tabletop blood testing product called the miniLab.

It’s the second wave of layoffs for Theranos, which previously in October fired 340 workers and said it would close its testing labs.

Once lauded as a potentially revolutionary company in the medical testing industry, Theranos has been plagued by questions about the accuracy and viability of its technology. U.S. inspectors found failures so severe as to jeopardize patients’ health at Theranos’s lab in Newark, California, leading to sanctions including banning Chief Executive Officer Elizabeth Holmes from running a clinical lab. Theranos is appealing the sanctions.