Payment company Cedar cuts 24% of employees

Cedar cut 24% of its workforce this week, making the billing and payment startup the latest digital healthcare company to cut, Reporting by Internal.

LinkedIn in a postFlorian Auto, CEO and co-founder, said the affected workers were notified Wednesday and the layoffs would help startups “move forward sustainably towards our goal”.

“We have made tough decisions to reduce our workforce, to adapt to the realities of the current market, and to reorganize ourselves for what we want to achieve after last year’s acquisition of OODA Health,” he wrote.

A spokesman for Cedar confirmed the cuts MobiHealthNewsSays the decision did not support short-term cost reduction.

“In the future, we are focused on creating a long-term strategic path to profitability that meets the expectations of our customers and their patients, as well as supporting Cedar’s business and product goals,” they say.

Greater trend

Cedar is an announcement Series D increased to $ 200 million in March last year, valued at $ 3.2 billion. A few months later, the company agreed to acquire OODA Health, a healthcare administrative platform for providers and providers for 425 million. The contract closed in June 2021.

Cedar too It recently relocated its headquarters to New York City, saying it would allow more flexibility for its newly hybrid workforce.

“In addition to expanding our footprint in San Francisco and Salt Lake City last year after our acquisition of OODA Health, the move reflects our strategic growth and commitment to invest in our existing workforce. I look forward to using the space to connect. Accelerate colleagues and product innovation.” ”Auto said in a statement at the time.

Digital health investment The first quarter of this year has slowed since the rise of 2021 and many players have also struggled in the public market. Cedar is not alone in following the pruning.

In late June, direct-to-consumer virtual care company Ro A few months after the announcement of the $ 150 million increase, 18% of its workforce has been laid off. Diagnostic company Q Health recently cut 170 manufacturing workers, which it blamed on the macroeconomic situation and the federal government’s move to remove funding from the COVID-19 test.

Early last month, Carbon Health CEO Eren Bali, a hybrid provider 250 employees have been laid off, about 8% of the company’s workforce.

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