Health

Healthcare automation firm Olive lays off round 450 employees



Healthcare automation startup Olive is shedding about 450 employees, in keeping with an e mail despatched by CEO Sean Lane to staff on Tuesday. 

Lane wrote the corporate had grown rapidly over the previous a number of years, hiring new staffers and launching new instruments. However the “realities of at the moment’s financial system” are pushing the automation firm to drag again from that technique. 

Going ahead, Olive will deal with the corporate’s Autonomous Income Cycle product geared towards suppliers and its Utilization Administration Transformation software for payers. The letter mentioned the plan will assist Olive change into worthwhile extra rapidly than the startup had first deliberate.

Laid off staff obtained an e mail notifying them that their final day is at the moment, however their official employment will finish in 60 days. Lane wrote that affected employees will likely be eligible for 2 weeks of severance per yr of service in addition to job placement assist and entry to a expertise portal. 

“Whereas we’re experiencing lots of the identical headwinds as different organizations — together with shifts within the trade panorama, evolving buyer expectations and difficult market circumstances — we additionally should reconcile missteps we made,” Lane wrote. 

“Our fast-paced progress and lack of focus strained our product and engineering sources and prevented us from executing rapidly on key initiatives. I take accountability for this.”

THE LARGER TREND

The layoffs come a couple of yr after Olive introduced it had closed a $400 million funding spherical that boosted its valuation to $4 billion. It additionally raised a number of rounds in 2020, together with a $225.5 million funding introduced in December that yr. 

In April, Axios reported that Olive wasn’t delivering on its guarantees to generate large value financial savings for well being methods by automating administrative duties.

Olive is way from the one digital well being firm pursuing layoffs this summer time. Fee startup Cedar laid off 24% of its workforce earlier this month. Ro, a direct-to-consumer digital care unicorn that earlier this yr raised $150 million, let go of 18% of its workforce. Diagnostics firm Cue Well being, hybrid supplier Carbon Well being, major care firm Ahead and psychological well being startup Cerebral have additionally laid off staff.

A Rock Well being report on digital well being funding by way of the primary half of 2022 discovered growth-stage firms might face specific challenges within the present market, noting the latest spate of layoffs. Sizes of Collection B, C and D+ offers declined in contrast with 2021, whereas Collection A rounds stayed regular. 



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