MARIETTA, Ga. (AP) — A Georgia biopharma company under scrutiny by the federal government says it will be laying off 240 people.

The Atlanta Journal-Constitution reports MiMedx announced the layoffs Wednesday. Interim Chief Executive Officer David Coles says the Marietta-based company needs to cut costs to improve profitability. MiMedx has been struggling with changing leadership and is under scrutiny by several federal agencies including the U.S. Department of Justice.

MiMedx announced in June that it needed to revise more than five years' worth of financial statements. Former chairman and Chief Executive Officer Parker "Pete" Petit resigned the next month. The then-chief operations officer, chief financial officer and former treasurer also resigned. The company said then their departures were over "conduct detrimental to the business." The company said Wednesday that its auditor also has resigned.

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Information from: The Atlanta Journal-Constitution, http://www.ajc.com

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