Accolade cuts headcount and reduces office space

Accolade, which offers virtual healthcare as well as care and navigation benefits, will cut staff and reduce its office space. According to a statement from the Securities and Exchange Commission.

The company declined to comment on the number of employees affected by the layoffs. In a statement, Chief Financial Officer Stephen Barnes wrote that Accolade is “accelerating the integration of recent acquisitions” and making strategic layoffs. It also closed or downsized some support facilities and moved some non-customer roles to new locations.

“With these steps, we expect to improve operational efficiency and streamline decision-making to provide faster customer support and innovation. Accolade plans to continue to hire staff to support its service capacity needs and growth expectations,” Barnes wrote in a statement.

BIG TREND

Accolade went public in $220 million IPO in 2020. The following year, the company made several acquisitions, including primary care provider PlushCare, telemedicine provider 2nd.MD, and clinical artificial intelligence company HealthReveal.

In the third fiscal quarter ending November 30, Accolade reported revenue of $90.9 million, up 9% from the same period in 2021. The company posted a net loss of $39.9 million compared to a profit of $22.5 million the previous year.

In a statement to the SEC, the company doubled its guidance for the fourth quarter ended Feb. 28, looking for $97 million in revenue to $101 million.

A number of digital health companies have announced layoffs in the last year. Last week, health tech company Color said it was laying off employees as it focused on testing for COVID-19, and home diagnostics startup Lucira Health recently filed for bankruptcy. Digital mental health company Cerebral also confirmed another round of layoffs, affecting 15% of its employees.