Telehealth staffing and providers firm Wheel confirmed it reduce 28% of its workforce, shedding 56 workers.
The layoffs mark the second spherical of current job cuts on the startup, which laid off 17% of its staff over the summer time. Based on an e mail obtained by Insider, CEO Michelle Davey stated the August layoffs had been “the appropriate resolution to make for our long-term success.”
THE LARGER TREND
Wheel launched its services in 2020 alongside a $13.9 million Sequence A increase, about two years after the corporate was based. Early final 12 months, 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 acquired provides to affix the corporate.
Layoffs in digital well being — and in tech companies extra usually — have turn into extra widespread, with plenty of well being tech gamers shedding staff. Corporations that raised large rounds in 2021 like Noom, Innovaccer and Komodo Health have just lately reduce employees.
Investment declined final 12 months in contrast with a booming digital well being funding atmosphere in 2021, although early stage deals largely held regular, in accordance with Silicon Valley Bank’s Healthcare Investments and Exits report.
“You are seeing a whole lot of these early-stage traders hiding out in seed, Sequence A as a result of it permits them to not have to fret about these 2021 valuations that we noticed available in the market that we’ve to take care of in some unspecified time in the future,” Jonathan Norris, managing director for enterprise improvement in SVB’s healthcare follow, informed MobiHealthNews final month.
“Nevertheless it permits them to do early-stage, affordable valuations. It additionally permits them to finance 12 to 24 months out and probably take into consideration that subsequent spherical being on just a little little bit of an upswing exterior of a down market.”
