Teladoc Well being is shedding about 300 staff, or about 6% of the digital care firm’s non-clinician workforce.
The job cuts are half of a bigger restructuring plan to scale back working prices. In a submitting with the Securities and Exchange Commission, Teldadoc stated it was additionally lowering its workplace area footprint in some markets.
In a letter to workers, CEO Jason Gorevic stated the corporate was slicing roles made redundant by its 2020 merger with Livongo. He additionally stated the digital care large is specializing in sustainable income development and profitability.
“The choice to scale back the scale of our workforce places our firm on an improved path to profitability and necessitates our collective concentrate on our business enterprise priorities — Main 360, power care administration, psychological well being and delivering true complete individual care — together with continued development in our BetterHelp shopper model,” he stated. “We all know that greater than half our business consumers need the built-in, complete individual technique that we provide, and delivering worth throughout our companies is of even better significance on this financial system.”
THE LARGER TREND
Teladoc struggled financially in 2022, racking up a $9.8 billion net loss by the primary three quarters of the yr, largely pushed by non-cash goodwill impairment expenses. But it surely posted a narrower loss in Q3, and it just lately shifted its revenue range for Q4 to the upper finish of its earlier estimate.
“I get requested so much in regards to 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 make the most of this monetary self-discipline and ship sturdy monetary outcomes persistently,” Gorevic stated on the J.P Morgan Healthcare Conference earlier this month.
Layoffs have develop into more and more frequent in digital well being over the previous a number of months, with many corporations citing a difficult financial atmosphere. In January, diagnostics firm Cue Health, hybrid supplier Carbon Health, 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.