After elevating $65 million in a Collection 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 staff, or roughly 20% of its workforce.
Redesign Well being forwarded MobiHealthNews CEO Brett Shaheen’s e mail that he despatched to the workers.
In his correspondence, Shaheen mentioned the corporate “made the choice to restructure a few of our departments and get rid of 67 roles, or simply over 20% of our firm.”
“Since day one, we now have been repeatedly evolving our mannequin to allow increased constancy innovation at scale, with the aim of positively impacting the lives of tens of thousands and thousands of individuals. As a part of this ongoing evolution, and given the necessity to prioritize in a difficult market, we’re making the tough choice to scale back the dimensions of sure groups throughout the corporate whereas persevering with to develop others. By way of this, we consider we will create better affect for our founders and companions,” he wrote.
“Whereas I’m assured these adjustments are vital, Redesign Well being will lose extremely gifted and dedicated group members right now. We’re supporting those that are impacted by providing a complete severance package deal and are deeply grateful for the optimistic affect they’ve had on Redesign and the healthcare business.”
The corporate additionally mentioned the layoffs might be tied to its continued strategic evolution versus a monetary choice — as evidenced by its current $65M Collection C elevate.
Redesign Well being contends that it has a wholesome stability 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 current 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 have been first reported by Fast Company.
THE LARGER TREND
A number of corporations have just lately introduced layoffs resulting from a change in plans or course.
Calif.-based startup Healing, which gives 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 staff in early November.
Peloton, which lower 500 staff 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 growth through the pandemic, which has since eased.