Teladoc Health is laying off about 300 employees, or about 6% of the virtual care company’s non-physician workforce.
The job cuts are part of a larger restructuring plan to reduce operating costs. in a filing with Securities and Exchange Commission, Teldadoc said it is also reducing its office space footprint in some markets.
In a letter to employees, CEO Jason Gorewick said the company was cutting roles it made redundant. 2020 merger with Livongo. He also added that the virtual care giant is focusing on sustainable revenue growth and profitability.
“The decision to reduce the size of our team puts our company on a better path to profitability and requires our collective focus on our core business priorities – Primary 360, chronic care management, mental health and providing true whole person care — as well as continued growth in our BetterHelp consumer brand,” he added. “We know that more than half of our commercial buyers want the integrated, whole-person strategy that we provide, and delivering value to our businesses is even more important in this economy.”
Teladoc struggles financially in 2022, a Net loss of $9.8 billion in the first three quarters of the year, largely driven by non-cash goodwill impairment charges. But it posted a narrow loss in Q3, and it recently shifted its revenue range for Q4 to the high end of its previous estimate.
“I get asked a lot about the competitive landscape. This is in stark contrast to many smaller competitors, whether public or private, that lack the scale to take advantage of this financial discipline and be able to deliver strong financials. consistent results,” Gorevik said JPMorgan Healthcare Conference earlier this month.
lay off Digital health has become increasingly common over the past several months, with many companies citing a challenging economic climate. In January, diagnostics company Q Health, hybrid provider Carbon Health, Alphabet subsidiary Verily Life Sciences and digital therapeutics company Akili Interactive were among digital health and health tech companies that announced job cuts.