GoodRx to put off 16% of its workforce
GoodRx, an organization finest identified for its prescription value transparency instruments, will lay off roughly 140 staff, making up about 16% of its workforce.
In accordance with a filing with the Securities and Exchange Commission, the discount will primarily have an effect on its technology-focused and advertising segments.
“The corporate is concentrated on effectively rising its core prescriptions enterprise, accelerating its pharma producer options enterprise and doubling down on shopper engagement,” Karsten Voermann, GoodRx’s chief monetary officer, wrote within the SEC submitting. “As the corporate focuses on these objectives, it’s consolidating capabilities and eliminating or decreasing funding in areas of decrease focus.”
THE LARGER TREND
GoodRx posted a $1.4 million web loss throughout the second quarter, in contrast with $31.1 million in revenue throughout the prior-year quarter. It reported income of $191.8 million, a 9% enhance from $176.6 million within the second quarter final 12 months.
The corporate additionally mentioned it had resolved an issue with an unnamed national grocery chain – which analysts suspected was Kroger – that had affected the acceptance of pharmacy profit reductions for some medication.
Throughout its second quarter earnings name, GoodRx mentioned it was specializing in growing new providers and incentives to make sure customers would create accounts on their platform, which it does not require to supply a “frictionless” expertise.
“We imagine the advantages of deeper relationships with our customers will permit us to assist them higher navigate their healthcare journey with much more compelling GoodRx worth proposition and person expertise,” cofounder and co-CEO Trevor Bezdek mentioned.
“We additionally imagine that permitting customers to supply us extra info will enhance the LTV [lifetime value] of every person in prescription transactions and different areas of the enterprise over time as we leverage it to create new instruments and merchandise for our customers in quarters and years to return.”
GoodRx’s announcement marks the most recent in a line of digital well being and well being tech firms which have laid off employees this summer time. Insider recently reported that telehealth providers vendor Wheel minimize 17% of its workforce in mid-August.
AI-backed genomic and medical information firm Sema4 introduced it had laid off round 250 employees, about 13% of its workforce, final month. Its founder Eric Schadt additionally stepped down from his roles on the firm. Meditation app Calm additionally not too long ago let go of 20% of its staffers.
Others saying layoffs over the previous few months embrace Pear Therapeutics, Included Well being, Olive, Cedar, Ro and Carbon Well being.