Teladoc Health lays off 300 employees to cut costs

Teladoc Health is laying off about 300 employees, or about 6% of the virtual care company’s non-medical staff.

The job cuts are part of a larger restructuring plan aimed at reducing operating costs. In an application with The Securities and Exchange Commission, Teldadoc, said it is also reducing its office space in some markets.

In a letter to staff, CEO Jason Gorevich said the company is cutting positions made redundant by its Merger with Livongo in 2020. He also said the virtual care giant is focused on sustainable revenue growth and profitability.

“The decision to downsize our team puts our company on an improved path to profitability and requires us to collectively focus on our commercial business priorities – Primary 360, Chronic Disease Management, Mental Health and Delivering Truly Holistic Care – along with continued growth. in our consumer brand BetterHelp,” he said. “We know that more than half of our commercial buyers want to leverage the comprehensive, one-person strategy we offer, and delivering value across all of our businesses is even more important in this economy.”

BIG TREND

Teladoc ran into financial difficulties in 2022 after accumulating Net loss of $9.8 billion for the first three quarters of the year, primarily attributable to non-cash impairment charges for goodwill. But the company posted a narrower third-quarter loss and recently shifted its fourth-quarter revenue band higher than its previous estimate.

“I am often asked about the competitive environment. This is in stark contrast to many smaller competitors, whether public or private, who lack the scale to take advantage of this financial discipline and deliver strong financial results on a sustainable basis,” Gorevich said at the JP Morgan Healthcare conference earlier this month.

Layoffs have become increasingly common in digital healthcare over the past few months, with many companies citing the difficult economic climate. In January, diagnostics company Cue Health, hybrid provider Carbon Health, Alphabet subsidiary Verily Life Sciences, and digital therapy company Akili Interactive were among the digital health and medical technology companies to announce job cuts.