Teladoc Health announced on Wednesday that they are cutting 300 non-clinical global employees. Moreover, the company will also remove redundant roles in a bid to reduce its cost.
Teladoc Health, Inc. is a multinational telemedicine and virtual healthcare company having its headquarter in United States. The digital health company provides services including telehealth, medical opinions, AI and analytics, telehealth devices and licensable platform services. However, the company suffered loss of $9.8 during the first three quarters of 2022. Hence, Teladoc Health has announced large restructuring in a plan to reduce its costs. Moreover, the company has also decided to reduce its office space at some locations.
CEO Jason Gorevic wrote a letter to the staff stating that the company is cutting the redundant roles. Furthermore, Gorevic stated that company will increase its focus on Primary360, chronic conditions monitor Chronic Care and its online counseling platform BetterHelp. “The decision to reduce the size of our team puts our company on an improved path to profitability and necessitates our collective focus on our commercial business priorities — Primary 360, chronic care management, mental health and delivering true whole person care — along with continued growth in our BetterHelp consumer brand. We know that more than half our commercial buyers want the integrated, whole person strategy that we offer, and delivering value across our businesses is of even greater importance in this economy.” Jason Gorevic futher stated in his letter.
Severance for impacted employees
Importantly, Teladoc has offered enhance severance to the impacted employees. This includes bonus for 2022 along with access to free therapy from the Teladoc-owned BetterHelp. On the other hand, the layoffs will reduce cost of stock-based compensation by $6 million during the first quarter of 2023.
Layoffs have become increasingly common in digital health companies over the past few months. The companies have cited challenging economic environment as the main reason of workforce reduction. Significantly, health tech companies including Cue Health, Carbon Health and Akili Interactive have laid off workers during January 2023.
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