Months after announcing a $150 million fundraise that boosted its valuation to $7 billion, direct-to-consumer virtual care company Ro is laying off 18% of its workforce, Mobi Health News reports.
“While we took steps over the last six months to prepare for a possible downturn, including raising additional capital and narrowing our focus, we came to the unfortunate conclusion that we needed to make more significant changes to manage expenses, increase the efficiency of our organization and better map our resources to our current strategy,” CEO Zachariah Reitano wrote in an email to staff.
Launched in 2017 as a men’s health clinic providing erectile dysfunction treatments, Ro has since expanded into mental health, weight management and dermatology.
Outside the $150 million fundraise announced in February, the virtual care startup has acquired several companies over the past year, including male fertility-focused Dadi, at-home diagnostic company Kit as well as Modern Fertility.
Ro is not the only digital health company pursuing layoffs amid the market downturn. Earlier this month, hybrid provider Carbon Health announced it was laying off 250 employees, about 8% of the company’s global workforce. Read more.
