Months after saying a $150 million fundraise that boosted its valuation to $7 billion, direct-to-consumer digital care firm Ro is shedding 18% of its workforce.
“Whereas we took steps over the past six months to arrange for a potential downturn, together with elevating further capital and narrowing our focus, we got here to the unlucky conclusion that we wanted to make extra important adjustments to handle bills, enhance the effectivity of our group and higher map our assets to our present technique,” CEO Zachariah Reitano wrote in an e-mail to workers first obtained by TechCrunch and Insider.
In accordance with the e-mail, affected staffers have been notified of the choice Thursday morning in one-on-one conversations. Laid-off staff will obtain two months of severance and advantages, and Ro is extending its choices train window to a few years. The startup can also be providing profession providers to affected workers.
THE LARGER TREND
Launched in 2017 as a males’s well being clinic offering erectile dysfunction remedies, Ro has since expanded into psychological well being, weight administration and dermatology.
Exterior the $150 million fundraise introduced in February, the digital care startup has acquired a number of corporations over the previous 12 months, together with male fertility-focused Dadi, at-home diagnostic firm Equipment in addition to Fashionable Fertility.
Ro isn’t the one digital well being firm pursuing layoffs amid the market downturn. Earlier this month, hybrid supplier Carbon Well being introduced it was shedding 250 workers, about 8% of the corporate’s international workforce.
Embattled psychological well being firm Cerebral can also be eliminating positions, digital pharmacy Truepill laid off 15% of its workforce and persistent situation administration firm Thirty Madison laid off staff after its merger with Nurx.
ON THE RECORD
“In mild of the present surroundings, now we have determined to realign our groups to raised map to our strategic priorities. As a consequence, Ro has applied troublesome but necessary adjustments to the group of the enterprise. We’re extremely grateful for the contributions of all these impacted and have executed our perfect to help them on this transition,” a Ro spokesperson wrote to MobiHealthNews.