Cedar laid off 24% of its workforce this week, making the billing and fee startup the newest digital well being firm to make cuts, in line with reporting by Insider.
In a submit 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 mission.”
“We made the tough resolution to scale back our workforce, with a purpose to adapt to present market realities, and re-organize ourselves for what we wish to obtain following final 12 months’s acquisition of OODA Well being,” he wrote.
A Cedar spokesperson confirmed the layoffs to MobiHealthNews, saying the choice wasn’t made to help short-term value cuts.
“Going ahead, we’re centered on making a long-term strategic path to profitability that helps Cedar’s enterprise and product objectives, whereas persevering with to exceed the expectations of our clients and their sufferers,” they mentioned.
THE LARGER TREND
Cedar introduced a $200 million Collection D elevate in March final 12 months, boosting its valuation to $3.2 billion. A number of months later, the corporate agreed to amass OODA Well being, a healthcare administrative platform for payers and suppliers, for $425 million. The deal closed in June 2021.
Cedar additionally not too long ago moved headquarters in New York Metropolis, which it mentioned would enable for extra flexibility for its newly hybrid workforce.
“Along with increasing our footprint final 12 months to San Francisco and Salt Lake Metropolis after our acquisition of OODA Well being, this transfer is reflective of our strategic progress and dedication to investing in our present workforce. I sit up for utilizing the area to attach with colleagues and speed up product innovation,” Otto mentioned in a press release on the time.
Digital well being funding slowed within the first quarter this 12 months after a booming 2021, and plenty of gamers struggled on the general public markets as effectively. Cedar is not alone in pursuing layoffs.
In late June, direct-to-consumer digital care firm Ro laid off 18% of its workforce, months after asserting a $150 million elevate. Diagnostics firm Cue Well being not too long ago minimize 170 manufacturing employees, which it attributed to bigger financial situations and the federal authorities’s transfer to divert funding from COVID-19 testing.
Early final month, Carbon Well being CEO Eren Bali mentioned the hybrid supplier laid off 250 employees, about 8% of the corporate’s workforce.