Teladoc Well being is shedding about 300 workers, or about 6% of the digital care firm’s non-clinician workforce.
The job cuts are half of a bigger restructuring plan to cut back working prices. In a submitting with the Securities and Alternate Fee, Teldadoc mentioned it was additionally lowering its workplace area footprint in some markets.
In a letter to workers, CEO Jason Gorevic mentioned the corporate was chopping roles made redundant by its 2020 merger with Livongo. He additionally mentioned the digital care big is specializing in sustainable income progress and profitability.
“The choice to cut back the scale of our staff places our firm on an improved path to profitability and necessitates our collective concentrate on our industrial enterprise priorities — Major 360, power care administration, psychological well being and delivering true entire particular person care — together with continued progress in our BetterHelp shopper model,” he mentioned. “We all know that greater than half our industrial patrons need the built-in, entire particular person technique that we provide, and delivering worth throughout our companies is of even larger significance on this financial system.”
THE LARGER TREND
Teladoc struggled financially in 2022, racking up a $9.8 billion internet loss by the primary three quarters of the 12 months, largely pushed by non-cash goodwill impairment expenses. Nevertheless it posted a narrower loss in Q3, and it not too long ago shifted its income vary for This autumn to the upper finish of its earlier estimate.
“I get requested rather a lot concerning the aggressive panorama. That is in stark distinction to lots of the small rivals on the market, whether or not they’re public or personal, who lack the size to have the ability to benefit from this monetary self-discipline and ship robust monetary outcomes constantly,” Gorevic mentioned on the J.P Morgan Healthcare Convention earlier this month.
Layoffs have change into more and more widespread in digital well being over the previous a number of months, with many corporations citing a difficult financial setting. In January, diagnostics firm Cue Well being, hybrid supplier Carbon Well being, Alphabet subsidiary Verily Life Sciences and digital therapeutics firm Akili Interactive have been among the many digital well being and well being tech corporations to announce job cuts.