Payment company Cedar lays off 24% of workforce

Cedar laid off 24% of its workforce this week, producing the billing and payment startup the latest electronic health and fitness business to make cuts, according to reporting by Insider. 

In a put up on LinkedIn, CEO and cofounder Florian Otto claimed impacted staff were being notified Wednesday, and the layoffs would support the startup “forge ahead sustainably on our mission.”

“We created the hard decision to reduce our workforce, in purchase to adapt to current sector realities, and re-organize ourselves for what we want to attain pursuing past year’s acquisition of OODA Well being,” he wrote.

A Cedar spokesperson verified the layoffs to MobiHealthNews, saying the determination wasn’t created to aid limited-time period price cuts. 

“Going ahead, we are focused on creating a extensive-expression strategic path to profitability that supports Cedar’s organization and merchandise aims, although continuing to exceed the anticipations of our prospects and their clients,” they stated. 

THE Bigger Trend

Cedar announced a $200 million Sequence D elevate in March final 12 months, boosting its valuation to $3.2 billion. A few months later, the organization agreed to acquire OODA Wellbeing, a healthcare administrative platform for payers and providers, for $425 million. The deal shut in June 2021. 

Cedar also not too long ago moved headquarters in New York Town, which it reported would permit for much more flexibility for its newly hybrid workforce. 

“In addition to increasing our footprint last yr to San Francisco and Salt Lake Metropolis after our acquisition of OODA Health, this shift is reflective of our strategic progress and dedication to investing in our current workforce. I glimpse ahead to employing the house to link with colleagues and accelerate solution innovation,” Otto mentioned in a assertion at the time.

Digital health and fitness investment decision slowed in the first quarter this year right after a booming 2021, and a lot of gamers struggled on the general public markets as effectively. Cedar is not by itself in pursuing layoffs.

In late June, immediate-to-consumer digital treatment corporation Ro laid off 18% of its workforce, months just after announcing a $150 million increase. Diagnostics firm Cue Overall health a short while ago cut 170 manufacturing personnel, which it attributed to much larger economic ailments and the federal government’s move to divert funding from COVID-19 screening.

Early last thirty day period, Carbon Wellbeing CEO Eren Bali explained the hybrid supplier laid off 250 personnel, about 8% of the company’s workforce.