Payment company Cedar lays off 24% of workforce

Cedar laid off 24% of its workforce this week, making the billing and fee startup the most recent digital well being company to make cuts, in accordance with reporting by Insider.

In a post on LinkedInCEO and cofounder Florian Otto stated affected employees had been notified Wednesday, and the layoffs would assist the startup “forge ahead sustainably on our mission.”

“We made the difficult decision to reduce our workforce, in order to adapt to current market realities, and re-organize ourselves for what we want to achieve following last year’s acquisition of OODA Health,” he wrote.

A Cedar spokesperson confirmed the layoffs to MobiHealthNewssaying the choice wasn’t made to assist short-term value cuts.

“Going forward, we are focused on creating a long-term strategic path to profitability that supports Cedars business and product goals, while continuing to exceed the expectations of our customers and their patients,” they stated.

THE LARGER TREND

Cedar introduced a $200 million Series D elevate in March final yr, boosting its valuation to $3.2 billion. A couple of months later, the company agreed to amass OODA Health, a healthcare administrative platform for payers and suppliers, for $425 million. The deal closed in June 2021.

Cedar additionally recently moved headquarters in New York City, which it stated would permit for extra flexibility for its newly hybrid workforce.

“In addition to expanding our footprint last year to San Francisco and Salt Lake City after our acquisition of OODA Health, this move is reflective of our strategic growth and commitment to investing in our current workforce. I look forward to using the space to connect with colleagues and accelerate product innovation,” Otto stated in an announcement on the time.

Digital well being funding slowed within the first quarter this yr after a booming 2021, and lots of gamers struggled on the general public markets as properly. Cedar is not alone in pursuing layoffs.

In late June, direct-to-consumer digital care company Ro laid off 18% of its workforce, months after saying a $150 million elevate. Diagnostics company Cue Health just lately minimize 170 manufacturing employees, which it attributed to bigger financial circumstances and the federal authorities’s transfer to divert funding from COVID-19 testing.

Early final month, Carbon Health CEO Eren Bali stated the hybrid supplier laid off 250 employees, about 8% of the company’s workforce.

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