Saturday, August 13, 2022

Included Health, Pear Therapeutics announce layoffs

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Virtual care company Included Health and prescription digital therapeutics maker Pear Therapeutics laid off employees this week, the latest in a string of digital health job cuts. 

First reported by Fierce Healthcare, Included reduced its workforce by less than 6% as part of a company restructuring. The virtual care company said member support teams are still growing. 

“We are actively investing in and scaling our member care and clinical teams to ensure the best possible experience for our members,” a company spokesperson wrote to MobiHealthNews.

“… This was a very difficult decision because it affects valued, talented team members. Our decisions about how to structure and resource our teams are guided by our commitments to our members, to our clients and partners, and to our mission to raise the standard of healthcare for everyone.”

In an SEC filing first spotted by Mass Device, Pear reported it had laid off approximately 25 employees, making up about 9% of its full-time workforce. 

The digital therapeutic company said it was restructuring operations to narrow its short-term business focus and cut its workforce due to the larger economic environment. Pear noted the reduction will cut operating expenses by $28 million over the next 18 months, extending its cash runway.

“The company’s restructuring includes external and internal cost reductions in almost all areas of the company,” CFO and COO Christopher D.T. Guiffre wrote in the filing. “The company focused cost reductions on pipeline candidates, discovery programs, business development and the company’s dual platform in order to prioritize certain of its commercial efforts.”

THE LARGER TREND

Included Health was formed through the merger of telehealth provider Doctor on Demand and clinical navigation platform Grand Rounds Health. The combined business announced plans to acquire Included Health, a health concierge platform for the LGBTQ+ community, shortly after the deal closed in 2021. The company officially rebranded as Included Health late last year. 

Pear offers FDA-cleared prescription digital therapeutics for chronic insomnia, opioid use disorder and substance use disorder. It hit the public markets in December after it merged with a special-purpose acquisition company. 

Pear reported revenue of $2.7 million during its first quarter compared with $376,000 during the first quarter of 2021 and $1.3 million in Q4. It posted a net loss of $23.86 million.

Meanwhile, Pear and Included are just the latest digital health and health tech companies to announce layoffs. The Boston Globe reported wearable fitness tracker WHOOP recently cut 15% of its workforce. The company had announced a $200 million Series F raise in August 2021.

Crain’s New York Business last week reported digital pharmacy Capsule is also pursuing layoffs. Other companies in the space that announced cuts this summer include automation company Olive, payment startup Cedar, direct-to-consumer virtual care company Ro, home diagnostics company Cue Health and hybrid care provider Carbon Health



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