Payment company Cedar lays off 24% of workforce

Cedar laid off 24% of its workforce this 7 days, creating the billing and payment startup the most up-to-date electronic health and fitness company to make cuts, according to reporting by Insider. 

In a write-up on LinkedIn, CEO and cofounder Florian Otto mentioned impacted personnel were being notified Wednesday, and the layoffs would enable the startup “forge in advance sustainably on our mission.”

“We designed the tough choice to minimize our workforce, in buy to adapt to recent market realities, and re-manage ourselves for what we want to reach pursuing last year’s acquisition of OODA Health,” he wrote.

A Cedar spokesperson verified the layoffs to MobiHealthNews, saying the final decision was not designed to aid quick-time period value cuts. 

“Heading forward, we are focused on generating a long-time period strategic path to profitability that supports Cedar’s enterprise and merchandise targets, though continuing to exceed the expectations of our clients and their clients,” they mentioned. 

THE More substantial Pattern

Cedar announced a $200 million Sequence D elevate in March previous calendar year, boosting its valuation to $3.2 billion. A number of months later on, the business agreed to obtain OODA Wellness, a healthcare administrative system for payers and companies, for $425 million. The offer shut in June 2021. 

Cedar also lately moved headquarters in New York City, which it mentioned would make it possible for for extra flexibility for its freshly hybrid workforce. 

“In addition to growing our footprint past 12 months to San Francisco and Salt Lake Metropolis following our acquisition of OODA Wellness, this move is reflective of our strategic progress and commitment to investing in our current workforce. I appear ahead to applying the space to join with colleagues and accelerate item innovation,” Otto mentioned in a assertion at the time.

Electronic well being expense slowed in the initially quarter this calendar year soon after a booming 2021, and lots of players struggled on the general public marketplaces as very well. Cedar isn’t really by itself in pursuing layoffs.

In late June, direct-to-purchaser digital care firm Ro laid off 18% of its workforce, months following announcing a $150 million increase. Diagnostics enterprise Cue Health lately minimize 170 producing staff, which it attributed to bigger financial problems and the federal government’s move to divert funding from COVID-19 testing.

Early last thirty day period, Carbon Health and fitness CEO Eren Bali mentioned the hybrid service provider laid off 250 workers, about 8% of the company’s workforce.