Theranos founder Elizabeth Holmes is stepping down as CEO

Jeff Chiu/AP

• Theranos founder Elizabeth Holmes is stepping down as CEO.
• Holmes founded the blood testing company in 2003, and remains the chair of the board.

Elizabeth Holmes is no longer the CEO of Theranos.

Holmes, who founded the blood testing company in 2003, will be replaced by David Taylor, the company's general counsel, the board said in a statement Friday.

Theranos, which at one point was valued at $9 billion, recently laid off most of its employees and is pleading with investors for more cash as it faces setbacks in the lab on its Zika test.

Here's the statement:

"The Board of Directors of Theranos, Inc., announced today that Elizabeth Holmes has stepped down as Chief Executive Officer and David Taylor, the Company's General Counsel, has been appointed Chief Executive Officer and General Counsel.

Ms. Holmes remains with the Company as Founder and Chair of the Board."

This story is developing.