Months after saying a $150 million fundraise that boosted its valuation to $7 billion, direct-to-consumer digital care firm Ro is shedding 18% of its workforce.
“Whereas we took steps over the past six months to organize for a attainable downturn, together with elevating extra capital and narrowing our focus, we got here to the unlucky conclusion that we wanted to make extra vital modifications to handle bills, enhance the effectivity of our group and higher map our sources to our present technique,” CEO Zachariah Reitano wrote in an e-mail to workers first obtained by TechCrunch and Insider.
In keeping with the e-mail, affected staffers had been notified of the choice Thursday morning in one-on-one conversations. Laid-off employees will obtain two months of severance and advantages, and Ro is extending its choices train window to 3 years. The startup can also be providing profession companies to affected workers.
THE LARGER TREND
Launched in 2017 as a men’s health clinic offering erectile dysfunction therapies, Ro has since expanded into mental health, weight management and dermatology.
Outdoors the $150 million fundraise introduced in February, the digital care startup has acquired a number of firms over the previous 12 months, together with male fertility-focused Dadi, at-home diagnostic firm Kit in addition to Modern Fertility.
Ro shouldn’t be the one digital well being firm pursuing layoffs amid the market downturn. Earlier this month, hybrid supplier Carbon Well being introduced it was laying off 250 employees, about 8% of the corporate’s international workforce.
Embattled psychological well being firm Cerebral can also be eliminating positions, digital pharmacy Truepill laid off 15% of its workforce and persistent situation administration firm Thirty Madison laid off workers after its merger with Nurx.
ON THE RECORD
“In mild of the present surroundings, we have now determined to realign our groups to higher map to our strategic priorities. As a consequence, Ro has applied tough but vital modifications to the group of the enterprise. We’re extremely grateful for the contributions of all these impacted and have carried out our easiest to assist them on this transition,” a Ro spokesperson wrote to MobiHealthNews.
