Collective Health, a health benefits management platform, has laid off 54 employees as it arranges its workforce to better align with customer needs.
The company’s CEO, Ali Diab, announced the layoffs on LinkedIn, saying the employees were being let go due to a “workforce reduction” while urging companies that may encounter those employees during the hiring process to provide them with “strong consideration.”
Collective Health acts as a third-party health benefits administrator, bringing companies’ various benefits into one platform to let employers manage their offerings while assisting employees with navigating their healthcare.
“We can confirm that as part of a restructuring of our workforce, we made the difficult decision to say goodbye to a small fraction of our staff on Monday. The goal of this restructuring is to better align and balance our resources with our product and customer needs, as well as to current market conditions,” a company spokesperson told MobiHealthNews in an email.
“Collective Health prides itself as a great place to work. This is because of how we treat each other and care for our employees. As we face the difficult task of supporting our impacted employees, we are holding ourselves accountable for bringing the same care to their individual transitions that we bring to our work every day. For those companies with open roles, we encourage you to be on the lookout for some wonderful, talented folks on the market now.”
THE LARGER TREND
In 2021, the San Francisco-based company scored $280 million in Series F funding, bringing the company’s valuation to $1.5 billion, joining the many digital health companies that year to reach unicorn status.
The company also announced its Premier Partnership Program, which would help employers identify the best fitting digital health platforms for their employee population, calculate return on investment, judge clinical outcomes and offer recommendations based on user data.
The program was launched with behavioral health startups Ginger, Lyra Health and Modern Health; telehealth primary care providers 98point6 and Teladoc Health; chronic condition management company Livongo; family planning startups Carrot Fertility and Progyny; cancer startup AccessHope; and musculoskeletal startup Hinge Health.
Two years earlier, the employee benefits platform raised $205 million in a Series E funding round, and a year prior collected $110 million in funding.
Several other companies provide healthcare benefits assistance, including Nayya, Pebble and HealthJoy.