30.1 C
New York

Exclusive: Hinge Health, a provider of virtual physical therapy services, has implemented a workforce reduction, laying off 10% of its employees.

Published:

Hinge Health, a nine-year-old company specializing in digital solutions for treating chronic musculoskeletal (MSK) conditions, has recently downsized its workforce by approximately 10%, according to exclusive information obtained by TechCrunch.

The affected employees held various roles within the company, including engineering positions, as reported by individuals on LinkedIn. Prior to the layoffs, Hinge Health boasted a workforce of over 1,700 employees, based on estimates from LinkedIn profiles.

In a statement, a spokesperson for the company explained the decision, stating, “As we continue to innovate in musculoskeletal care, we are also focused on building a sustainable business for the long term. To expedite our path to profitability, streamline decision-making processes, and allocate resources more effectively, we have made the difficult choice to restructure our organization. We deeply appreciate the contributions of all departing team members and are committed to supporting them during this transition.”

This reduction in workforce coincides with Hinge Health’s preparations for a potential initial public offering (IPO) and its strategic goal of achieving profitability. While the company did not specify a timeline for its IPO, it has previously indicated that it is not under pressure to go public this year, given its healthy balance sheet with $400 million in cash reserves.

Hinge Health reached a valuation of $6.2 billion in October 2021 following a $400 million Series E funding round led by Tiger Global and Coatue Management. To date, the company has raised a total of $828 million in funding, according to data from PitchBook.

Among its competitors, Hinge Health faces competition from Sword Health, backed by General Catalyst and Khosla Ventures, which was valued at $2 billion as of November 2021.

Related articles

spot_img

Recent articles

spot_img