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 would have liked to make extra vital adjustments to handle bills, improve the effectivity of our group and higher map our sources to our present technique,” CEO Zachariah Reitano wrote in an electronic mail to employees first obtained by TechCrunch and Insider.
In response to 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 be providing profession companies to affected employees.
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 yr, together with male fertility-focused Dadi, at-home diagnostic firm Package in addition to Trendy 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 world workforce.
Embattled psychological well being firm Cerebral can 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, we’ve got determined to realign our groups to raised map to our strategic priorities. As a consequence, Ro has carried out tough but essential adjustments to the group of the enterprise. We’re extremely grateful for the contributions of all these impacted and have completed our easiest to help them on this transition,” a Ro spokesperson wrote to MobiHealthNews.
