Months after announcing a Fundraising $150 million that motivated it $7 billion valuationdirect-to-consumer virtual care company Ro is laying off 18% of its workforce.
“While we have taken steps over the past six months to prepare for a possible recession, including raising more capital and narrowing our focus, we have come to the unfortunate conclusion that we need to make more significant changes to manage costs, increase organizational efficiency, and better map our resources to our current strategy”, CEO Zachariah Reitano wrote in an email to employees first obtained by TechCrunch and Insiders.
According to the email, affected employees were informed of the decision Thursday morning in live chats. The laid-off workers will receive two months of severance and benefits, and Ro is extending the term to exercise his options to three years. The startup is also providing career services to affected employees.
TREND TO BIGGER
Debuted in 2017 as men’s health clinic offering treatments for erectile dysfunction, Ro has since expanded into mental health, weight management and Dermatology.
Outside of the $150 million fundraiser announced in February, the virtual care startup has acquired several companies over the past year, including Dadi focuses on male fertility, home diagnostic company Kits as Modern fertility rate.
Ro isn’t the only digital health company pursuing layoffs amid the market downturn. Earlier this month, blend supplier Carbon Health announced that it lay off 250 employeesabout 8% of the company’s global workforce.
The collaborative mental health company Cerebral is also remove positionsTruepill digital pharmacy lay off 15% of the workforce and chronic condition management company Thirty Madison lay off workers after merging with Nurx.
ON PROFILE
“Amid the current environment, we have decided to reorganize our teams to better define our strategic priorities. As a result, Ro has made difficult but important changes. We’re incredibly grateful for the contributions of all those affected, and we’ve done our best to support them in this transition,” said a Ro spokesperson. Write to MobiHealthNews.
