Accolade, which provides digital healthcare in addition to care and advantages navigation companies, will lower employees and downsize its workplace footprint, according to a filing with the Securities and Alternate Fee.
The corporate declined to touch upon the variety of workers affected by the layoffs. Within the submitting, CFO Stephen Barnes wrote Accolade was “accelerating the mixing of latest acquisitions” and making strategic reductions within the firm’s workforce. It has additionally closed or in the reduction of on some satellite tv for pc services and relocated some non-customer-facing roles to new places.
“With these steps, we count on to create working efficiencies and streamline decision-making to ship buyer assist and innovation extra shortly. Accolade plans to proceed to rent personnel to assist its service capability wants and development expectations,” Barnes wrote within the submitting.
THE LARGER TREND
Accolade went public in a $220 million IPO in 2020. The next yr, the corporate made a number of acquisitions, together with digital main care firm PlushCare, telemedicine vendor 2nd.MD and scientific AI firm HealthReveal.
In its fiscal third quarter that ended November 30, Accolade reported $90.9 million in income, a 9% improve in contrast with the identical interval in 2021. It posted a internet lack of $39.9 million in contrast with earnings of $22.5 million through the prior-year interval.
Within the SEC submitting, the corporate doubled down on its steerage for its fourth quarter that ended on February 28, anticipating income between $97 million and $101 million.
A variety of digital well being corporations have introduced layoffs over the previous yr. Final week, inhabitants well being tech firm Coloration stated it had laid off workers as its pivoted focus away from COVID-19 testing, whereas residence diagnostics startup Lucira Well being just lately filed for bankruptcy. Digital psychological well being firm Cerebral additionally confirmed another round of layoffs affecting 15% of its workforce.
