Telehealth staffing and providers firm Wheel confirmed it reduce 28% of its workforce, shedding 56 staff.
The layoffs mark the second spherical of latest job cuts on the startup, which laid off 17% of its staff over the summer season. Based on an e mail obtained by Insider, CEO Michelle Davey stated the August layoffs had been “the appropriate choice to make for our long-term success.”
THE LARGER TREND
Wheel launched its services in 2020 alongside a $13.9 million Collection A increase, about two years after the corporate was based. Early final yr, the corporate introduced it introduced in $150 million in Series C funding, bringing its complete increase to $216 million.
In November, Wheel introduced it was buying GoodRx’s backend virtual care technology for $19.5 million in money. On the time, about 20 GoodRx staff obtained affords to affix the corporate.
Layoffs in digital well being — and in tech companies extra usually — have change into extra frequent, with quite a few well being tech gamers shedding staff. Firms that raised big rounds in 2021 like Noom, Innovaccer and Komodo Health have just lately reduce workers.
Investment declined final yr in contrast with a booming digital well being funding setting in 2021, although early stage deals largely held regular, in response to Silicon Valley Bank’s Healthcare Investments and Exits report.
“You are seeing numerous these early-stage buyers hiding out in seed, Collection A as a result of it permits them to not have to fret about these 2021 valuations that we noticed out there that we’ve got to take care of sooner or later,” Jonathan Norris, managing director for enterprise improvement in SVB’s healthcare apply, informed MobiHealthNews final month.
“But it surely permits them to do early-stage, affordable valuations. It additionally permits them to finance 12 to 24 months out and doubtlessly take into consideration that subsequent spherical being on just a little little bit of an upswing exterior of a down market.”
