Teladoc Health is laying off 300 employees or 6% of its workforce, CEO Jason Gorevic said in an email to employees Wednesday.
Gorevic said the telehealth company is eliminating redundant non-clinical roles due to its $18.5 billion acquisition of digital health company Livongo Health in 2020. He also said the company company is driving the path to profitability.
“These actions put us on a stronger financial footing at a time when many of our competitors are questioning their ability to maintain their doors,” Gorevic said in an email.
The layoffs come after a challenging 2022 for the company. It recorded a net loss of $9.8 billion in the first three quarters of the year, largely due to a $9.6 billion loss of goodwill charge related to the Livongo merger. Its share price fell from a high of $296.66 a share in February 2021 to $28.22 a share late Tuesday.
At the JP Morgan Healthcare Conference last week, Gorevic addressed what he said was the company’s competitive advantage over rival telemedicine providers to weather attacks. economic headwinds.
“Many small competitors out there, public or private, lack the scale to deliver consistently strong financial results,” said Gorevic. “There are a lot of virtual care companies out there that are narrower focused, smaller in size and are crowding out the advantages of a single company. [software] solutions.”
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