Fee firm Cedar lays off 24% of workforce

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Cedar laid off 24% of its workforce this week, making the billing and cost startup the most recent digital well being firm to make cuts, in accordance with reporting by Insider

In a put up on LinkedIn, CEO and cofounder Florian Otto stated affected staff have been notified Wednesday, and the layoffs would assist the startup “forge forward sustainably on our mission.”

“We made the troublesome choice to cut back our workforce, to be able to adapt to present market realities, and re-organize ourselves for what we wish to obtain following final yr’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 price cuts. 

“Going ahead, we’re centered on making a long-term strategic path to profitability that helps Cedar’s enterprise and product targets, whereas persevering with to exceed the expectations of our prospects and their sufferers,” they stated. 

THE LARGER TREND

Cedar introduced a $200 million Collection D increase in March final yr, 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 stated would enable for extra flexibility for its newly hybrid workforce. 

“Along with increasing our footprint final yr to San Francisco and Salt Lake Metropolis after our acquisition of OODA Well being, this transfer is reflective of our strategic development and dedication to investing in our present workforce. I sit up for utilizing the house to attach with colleagues and speed up product innovation,” Otto stated in a press release on the time.

Digital well being funding slowed within the first quarter this yr after a booming 2021, and lots 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 increase. Diagnostics firm Cue Well being not too long ago reduce 170 manufacturing staff, which it attributed to bigger financial circumstances and the federal authorities’s transfer to divert funding from COVID-19 testing.

Early final month, Carbon Well being CEO Eren Bali stated the hybrid supplier laid off 250 staff, about 8% of the corporate’s workforce. 



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