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Hybrid provider Carbon Health lays off 250 employees

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Carbon Health is going to lay off 250 employees, about 8% of the hybrid healthcare provider’s global workforce, according to a message from CEO Eren Bali.

Bali wrote that the company’s core business grew fourfold last year, but Carbon had generated “significant” revenue from COVID-19-related services. As the pandemic shifts, Carbon is shutting down some of its COVID-specific activities.

In addition, Bali said Carbon had focused on revenue growth, patient recruitment and retention, and service expansion in recent years, and planned to shift its goal to become profitable.

“While that was the right decision in 2020 and 2021, the macro environment with more volatile capital markets means it’s vital that we focus less on growth and more on profitability,” he wrote.

THE BIGGER TREND

In July Carbon scored no less than Investment of $350 million, boosting the valuation to $3.3 billion.

Since then, the hybrid healthcare startup has accelerated, including the purchase of a remote patient monitoring company Alertive Healthcare, a chain of emergency care clinics in New Jersey, two clinic chains in Arizona and California, and a group of clinics in Southern California.

Just before Carbon announced its fundraiser in July, it acquired a diabetes management platform Steady Health and has since launched its own offering and metabolic health assessment program.

Digital health investment slowed in the first quarter of this year, and most companies in the public markets are under financial pressure. According to Digital health and technology, controversial digital mental health company Cerebral will also lay off workers this summer. Chronic disease platform Thirty Madison fired employees last month after its merger with Nurx, a women’s health startup. Meanwhile, weight-loss company Noom laid off about a quarter of its coaching staff.

ON THE REGISTRATION

“These changes, in addition to some non-personnel reductions in operating costs, will enable Carbon Health to be profitable much earlier than we originally planned, which is a wise thing to do in today’s market. Our mission: to make great healthcare accessible – remains unchanged,” wrote Bali.

“The difficult actions we took were necessary to strengthen our position both financially and strategically going forward, and they set us up to fulfill that mission for our patients, caregivers, partners and employees.”

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