Cedar laid off 24% of its body of workers this week, making the billing and fee startup the newest virtual well being corporate to make cuts, in line with reporting via Insider.
In a put up on LinkedIn, CEO and cofounder Florian Otto mentioned affected employees have been notified Wednesday, and the layoffs would assist the startup “forge forward sustainably on our project.”
“We made the tough resolution to cut back our body of workers, in an effort to adapt to present marketplace realities, and re-organize ourselves for what we need to succeed in following closing yr’s acquisition of OODA Well being,” he wrote.
A Cedar spokesperson showed the layoffs to MobiHealthNews, announcing the verdict wasn’t made to make stronger temporary price cuts.
“Going ahead, we’re keen on making a long-term strategic trail to profitability that helps Cedar’s trade and product targets, whilst proceeding to exceed the expectancies of our shoppers and their sufferers,” they mentioned.
THE LARGER TREND
Cedar introduced a $200 million Sequence D elevate in March closing yr, boosting its valuation to $3.2 billion. A couple of months later, the corporate agreed to procure OODA Well being, a healthcare administrative platform for payers and suppliers, for $425 million. The deal closed in June 2021.
Cedar additionally lately moved headquarters in New York Town, which it mentioned would permit for extra flexibility for its newly hybrid body of workers.
“Along with increasing our footprint closing yr to San Francisco and Salt Lake Town after our acquisition of OODA Well being, this transfer is reflective of our strategic enlargement and dedication to making an investment in our present body of workers. I stay up for the use of the distance to connect to colleagues and boost up product innovation,” Otto mentioned in a remark on the time.
Virtual well being funding slowed within the first quarter this yr after a booming 2021, and plenty of gamers struggled at the public markets as neatly. Cedar is not by myself in pursuing layoffs.
In overdue June, direct-to-consumer digital care corporate Ro laid off 18% of its body of workers, months after pronouncing a $150 million elevate. Diagnostics corporate Cue Well being lately reduce 170 production employees, which it attributed to greater financial stipulations and the government’s transfer to divert investment from COVID-19 checking out.
Early closing month, Carbon Well being CEO Eren Bali mentioned the hybrid supplier laid off 250 employees, about 8% of the corporate’s body of workers.