After elevating $65 million in a Sequence C spherical roughly one month in the past, Redesign Well being, an organization that builds, launches and finds funding for different healthcare startups, is shedding 67 workers, or roughly 20% of its workforce.
Redesign Well being forwarded MobiHealthNews CEO Brett Shaheen’s electronic mail that he despatched to the workers.
In his correspondence, Shaheen stated the corporate “made the choice to restructure a few of our departments and eradicate 67 roles, or simply over 20% of our firm.”
“Since day one, we now have been repeatedly evolving our mannequin to allow greater constancy innovation at scale, with the purpose of positively impacting the lives of tens of hundreds of thousands of individuals. As a part of this ongoing evolution, and given the necessity to prioritize in a difficult market, we’re making the troublesome resolution to scale back the scale of sure groups throughout the corporate whereas persevering with to develop others. Via this, we consider we will create larger impression for our founders and companions,” he wrote.
“Whereas I’m assured these adjustments are crucial, Redesign Well being will lose extremely proficient and dedicated group members at the moment. We’re supporting those that are impacted by providing a complete severance package deal and are deeply grateful for the optimistic impression they’ve had on Redesign and the healthcare business.”
The corporate additionally stated the layoffs may be tied to its continued strategic evolution versus a monetary resolution — as evidenced by its latest $65M Sequence C increase.
Redesign Well being contends that it has a wholesome steadiness sheet and is continuous to rent. It has open roles on its web site and expects to finish Q1 2023 with a complete headcount equal to or near the extent earlier than the latest discount, reallocated throughout the restructured departments per its new priorities.
Redesign has launched greater than 40 well being tech corporations since its founding in 2018, together with most cancers care-coordination platform Jasper Well being, weight administration firm Calibrate, psychological well being firm UpLift and home-based care firm MedArrive.
The layoffs at Redesign Well being had been first reported by Quick Firm.
THE LARGER TREND
A number of corporations have just lately introduced layoffs resulting from a change in plans or route.
Calif.-based startup Healing, which affords COVID-19 testing and vaccination companies all through the U.S., shifted its focus to launching a brand new well being plan. In flip, it plans to put off 109 workers in early November.
Peloton, which lower 500 workers in its fourth spherical of layoffs earlier this month, cited the necessity to restructure the enterprise after struggling financially. The at-home health firm skilled a considerable increase throughout the pandemic, which has since eased.