After raising $65 million in a Series C round approximately one month ago, Redesign Health, a company that builds, launches and finds funding for other healthcare startups, is laying off 67 employees, or roughly 20% of its workforce.
Redesign Health forwarded MobiHealthNews CEO Brett Shaheen’s email that he sent to the employees.
In his correspondence, Shaheen said the company “made the decision to restructure some of our departments and eliminate 67 roles, or just over 20% of our company.”
“Since day one, we have been continuously evolving our model to enable higher fidelity innovation at scale, with the goal of positively impacting the lives of tens of millions of people. As part of this ongoing evolution, and given the need to prioritize in a challenging market, we are making the difficult decision to reduce the size of certain teams across the company while continuing to grow others. Through this, we believe we can create greater impact for our founders and partners,” he wrote.
“While I am confident these changes are necessary, Redesign Health will lose incredibly talented and committed team members today. We are supporting those who are impacted by offering a comprehensive severance package and are deeply grateful for the positive impact they have had on Redesign and the healthcare industry.”
The company also said the layoffs can be tied to its continued strategic evolution as opposed to a financial decision — as evidenced by its recent $65M Series C raise.
Redesign Health contends that it has a healthy balance sheet and is continuing to hire. It has open roles on its website and expects to end Q1 2023 with a total headcount equal to or close to the level before the recent reduction, reallocated across the restructured departments per its new priorities.
Redesign has launched more than 40 health tech companies since its founding in 2018, including cancer care-coordination platform Jasper Health, weight management company Calibrate, mental health company UpLift and home-based care company MedArrive.
The layoffs at Redesign Health were first reported by Fast Company.
THE LARGER TREND
Several companies have recently announced layoffs due to a change in plans or direction.
Calif.-based startup Curative, which offers COVID-19 testing and vaccination services throughout the U.S., shifted its focus to launching a new health plan. In turn, it plans to lay off 109 employees in early November.
Peloton, which cut 500 employees in its fourth round of layoffs earlier this month, cited the need to restructure the business after struggling financially. The at-home fitness company experienced a substantial boom during the pandemic, which has since eased.