Healthcare technology and digital health companies continue to cut jobs in the face of market uncertainty and the need to restructure operations.
Virtual care company Included Health, which was formed through the merger of Grand Rounds Health and Doctor on Demand last year, recently reduced its headcount by less than 6%, a company spokesperson confirmed to Fierce Healthcare.
"Included Health continues to grow and innovate. We are actively investing in and scaling our member care and clinical teams to ensure the best possible experience for our members. While the teams supporting our members continue to grow — as does Included Health overall — we have restructured," the spokesperson said in an email.
"This was a very difficult decision because it affects valued, talented team members. Our decisions about how to structure and resource our teams are guided by our commitments to our members, to our clients and partners, and to our mission to raise the standard of healthcare for everyone," the spokesperson said.
Shortly after Doctor on Demand and Grand Rounds Health merger was announced, it was revealed the two companies intended to acquire a care concierge platform for LGBTQ+ patients, also called Included Health. The goal of that acquisition, the two said at the time, was to strengthen their ability to serve a diverse member population. The company then rebranded as Included Health.
Grand Rounds launched in 2011 and got its start with virtually connecting patients with top-ranked medical experts for a second opinion. The company's services are now used by more than 6 million workers at companies such as Walmart, Home Depot, Salesforce, Travelers and other firms.
San Francisco-based Doctor On Demand provides on-demand and scheduled visits with U.S.-licensed healthcare providers in both medical and behavioral health. The company currently covers more than 98 million lives. In July, the digital health firm reported that it had more than doubled its covered lives in the first half of 2020, propelling Doctor On Demand to 3 million virtual visits.
Doctor On Demand has raised $236 million to date, while Grand Rounds has banked $270 million from investors.
Grand Rounds was last valued at $1.34 billion in a round in mid-2020. Doctor on Demand was valued at about $820 million, according to SharesPost.
Buzzy unicorn Whoop also revealed that it will cut 15% of its workforce, impacting every department in the company, the Boston Globe reported.
The wearable fitness tech startup is noted for its connection to big names in sports such as LeBron James, Tiger Woods and Michael Phelps.
Whoop raised $200 million in a series F funding round back in August as the company looked to grow internationally. That capital influx raised the company’s valuation to $3.6 billion, according to Whoop.
In a LinkedIn post, Ben Foster, Whoop’s chief product officer, who was impacted by the job cuts, said "many growth stage companies who relied on endless streams of venture capital must immediately downshift to manage burn and extend their runway.”
"The Whoop brand, product, and business remain incredibly strong, but this is a move that protects it against dangerous market conditions. Following this reduction, the company is now in a far stronger position to realize its fullest potential. I hope others also affected will take solace in this inconvenient truth.
The companies join digital pharmacy Capsule, weight loss telehealth company Calibrate, digital health startup Ro, healthcare payments company Cedar, healthcare automation startup Olive and Carbon Health slashing head counts in the face of a market downturn.
Primary care company Forward, reportedly worth more than $1 billion, recently cut 5% of its workforce.
Health tech companies cutting staff this year included Mfine, a Bengaluru, India-based platform company (600 employees laid off); Stockholm-based digital health company Kry (100 employees); Thirty Madison, which recently merged with Nurx (24); divvyDOSE (62); Noom (495); Ahead (44); Chinese healthcare company WeDoctor (500); and Truepill, according to Layoffs.fyi, which keeps a database of reported layoffs.