Inhabitants well being expertise firm Color introduced it had laid off employees because it pivots focus away from COVID-19 testing.
In line with posts by former workers on LinkedIn, the corporate reduce 300 jobs. Coloration CEO Othman Laraki confirmed the layoffs in his own post, saying the corporate was downsizing its groups targeted on COVID-19 testing given the looming end of the public health emergency and diminished buyer curiosity in pandemic-related providers.
Laraki mentioned the corporate would give attention to its testing and telehealth infrastructure for presidency packages, and in addition its prevention instruments for employers and healthcare purchasers.
“Amidst change, we’ll proceed to assist present packages and improve entry for underserved populations. With a reinvestment in our core enterprise and the belief of our clients, we’re targeted on delivering excessive entry, excessive impression inhabitants healthcare packages that assist everybody lead the healthiest life that science and medication can supply. Whereas yesterday was a troublesome day for our group, we’re optimistic about our future as an organization and the impression we may have,” he wrote.
THE LARGER TREND
Coloration raised two massive rounds of funding in 2021, together with a $167 million Series D and a $100 million Series E. The corporate, which beforehand focused on genomics earlier than pivoting to public well being tech, added behavioral health services with the acquisition of Temper Lifters final 12 months.
Layoffs at digital well being and well being tech firms surged in 2022, together with at startups that had raised important quantities of investor {dollars} in 2021.
A declining give attention to COVID-19 has additionally impacted some firms. Lucira Well being, which develops house diagnostic checks, just lately filed for bankruptcy simply as the corporate obtained the primary Emergency Use Authorization from the FDA for an over-the-counter at-home mixture COVID-19 and flu check. The corporate mentioned the regulatory course of had taken longer than it anticipated and demand for its COVID-19 checks had slowed in 2022.
