Accolade, which presents digital healthcare in addition to care and advantages navigation companies, will minimize employees and downsize its workplace footprint, based on a submitting with the Securities and Alternate Fee.
The corporate declined to touch upon the variety of workers affected by the layoffs. Within the submitting, CFO Stephen Barnes wrote Accolade was “accelerating the combination of current acquisitions” and making strategic reductions within the firm’s workforce. It has additionally closed or reduce on some satellite tv for pc amenities and relocated some non-customer-facing roles to new areas.
“With these steps, we anticipate to create working efficiencies and streamline decision-making to ship buyer help and innovation extra rapidly. Accolade plans to proceed to rent personnel to help its service capability wants and development expectations,” Barnes wrote within the submitting.
THE LARGER TREND
Accolade went public in a $220 million IPO in 2020. The next 12 months, the corporate made a number of acquisitions, together with digital main care firm PlushCare, telemedicine vendor 2nd.MD and medical AI firm HealthReveal.
In its fiscal third quarter that ended November 30, Accolade reported $90.9 million in income, a 9% enhance in contrast with the identical interval in 2021. It posted a internet lack of $39.9 million in contrast with earnings of $22.5 million throughout the prior-year interval.
Within the SEC submitting, the corporate doubled down on its steerage for its fourth quarter that ended on February 28, anticipating income between $97 million and $101 million.
Numerous digital well being corporations have introduced layoffs over the previous 12 months. Final week, inhabitants well being tech firm Colour stated it had laid off employees as its pivoted focus away from COVID-19 testing, whereas dwelling diagnostics startup Lucira Well being not too long ago filed for chapter. Digital psychological well being firm Cerebral additionally confirmed one other spherical of layoffs affecting 15% of its workforce.