Virtual Care Unicorn Ro 18% layoffs

A few months after the announcement Raising $ 150 million to raise its valuation to $ 7 billion, direct-to-consumer virtual care company Ro is cutting 18% of its staff.

“While we have taken steps over the past six months to prepare for potential recessions, including raising additional capital and shrinking our focus, we have come to the unfortunate conclusion that we need to make more significant changes to manage our costs, improve our organization’s efficiency. Mapping resources better, “CEO Zakaria Reitano wrote in an email to staff. TechCrunch And Internal.

According to the email, affected workers were informed of the decision in one-on-one conversations Thursday morning. The laid-off workers will receive two months of separation and benefits, and Ro’s alternative practice window is being extended to three years. The startup is also providing career services to the affected employees.

Greater trend

Launched in 2017 as a The men’s health clinic provides treatment for erectile dysfunction, Ro has since expanded into mental health, weight management and dermatology.

In addition to the $ 150 million fundraiser announced in February, the virtual care startup has acquired several companies in the past year, including Male fertility-centered grandmothers, diagnostic company kits at home as well as modern fertility.

Roy is not the only digital healthcare company that is tweaking it Market downturn. Earlier this month, hybrid provider Carbon Health announced it was cutting 250 employees, about 8% of the company’s global workforce.

Cerebral is also a mental health organization By eliminating the position, digital pharmacy Trupil has laid off 15% of its workforce and employees after merging with long-term management company Thirty Madison Nurx.

On record

“In light of the current environment, we have decided to reorganize our teams to better map with our strategic priorities. As a result, Ro has implemented difficult but important changes in business organization. We are incredibly grateful for the contributions of all who have been affected and Tried as much as possible, ”wrote a Ro spokesman MobiHealthNews.

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