Nearly 200 employees are taking voluntary buyouts from Outcome Health following allegations that the company deceived investors with fraudulent financial reports.
The 198 employees that took Outcome Health’s offer, which includes 90 days severance, represent more than one-third of the company’s current workforce.
The buyouts were first reported by Crain’s Chicago Business. A source close to the company confirmed the accuracy of that report, adding that the number was in line with the company’s expectations. Earlier this week, The Wall Street Journal reported that Outcome was offering voluntary buyouts after laying off 76 employees in September.
A company spokesperson declined to comment. In a statement issued Sunday, Outcome Health said it was offering buyouts because it “understands that these are challenging times and that the ongoing scrutiny in the media may not be the right fit for everyone.”
The buyouts are a sharp reversal from the Chicago-based company’s plans to add 2,000 new employees by 2022, and build a new “co-working and entrepreneurship campus” known as Outcome Tower to its existing headquarters.
RELATED: 3 medical associations cut ties with Outcome Health, as others reconsider their partnerships
Since then, the company has endured weeks of bad press following a report that some employees at the company misled advertisers. Outcome Health is also facing a lawsuit from investors that claims the company’s founders provided fraudulent financial data, leading a $500 million funding round in May.
This week, FierceHealthcare reported that three medical associations, including the American Medical Association, terminated their partnerships with the company. Several other national societies have either declined to renew their agreement or launched an internal review in light of the allegations.