Redesign Well being lays off 67 staff in ‘restructuring transfer’

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 staff, or roughly 20% of its workforce.

Redesign Well being forwarded MobiHealthNews CEO Brett Shaheen’s electronic mail that he despatched to the staff. 

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 have now been repeatedly evolving our mannequin to allow larger constancy innovation at scale, with the aim of positively impacting the lives of tens of tens of millions 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 cut back the scale of sure groups throughout the corporate whereas persevering with to develop others. By means of this, we imagine we will create higher impression for our founders and companions,” he wrote. 

“Whereas I’m assured these modifications are vital, Redesign Well being will lose extremely proficient and dedicated group members at this time. We’re supporting those that are impacted by providing a complete severance bundle and are deeply grateful for the constructive impression they’ve had on Redesign and the healthcare business.”

The corporate additionally stated the layoffs will be tied to its continued strategic evolution versus a monetary resolution — as evidenced by its current $65M Sequence C elevate. 

Redesign Well being contends that it has a wholesome stability sheet and is constant 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 Quick Firm. 

THE LARGER TREND

A number of corporations have lately introduced layoffs on account of a change in plans or path.

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 staff in early November. 

Peloton, which minimize 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 throughout the pandemic, which has since eased.