Accolade, which offers virtual healthcare as well as care and benefits navigation services, will reduce its workforce and reduce its office footprint, according to a file with the Securities and Exchange Commission.
The company declined to comment on the number of employees affected by the layoffs. In the filing, Chief Financial Officer Stephen Barnes wrote that Accolade was “accelerating the integration of recent acquisitions” and making strategic reductions in the company’s workforce. It also closed or downsized some satellite facilities and moved some non-customer roles to new locations.
“With these steps, we expect to create operational efficiencies and streamline decision-making to deliver faster customer support and innovation. Accolade plans to continue to hire staff to meet its service capacity needs and growth expectations,” Barnes wrote in the filing.
THE GREAT TREND
Accolade went public in a $220 million IPO in 2020. The following year, the company made several acquisitions, including a virtual primary care company PlushCaretelemedicine provider 2nd.MD and clinical AI company Reveal Health.
In its third fiscal quarter which ended November 30, Accolade recorded revenue of $90.9 million, an increase of 9% over the same period in 2021. It recorded a net loss of $39.9 million compared to income of $22.5 million in the prior year period.
In the SEC filing, the company doubled its guidance for its fourth quarter that ended Feb. 28, expecting revenue of between $97 million and $101 million.
A number of digital health companies have announced layoffs over the past year. Last week, population health technology company Color said it had laid off workers as its focus pivoted away from COVID-19 testing, while home diagnostics startup Lucira Health recently filed for bankruptcy. Digital mental health company Cerebral has also confirmed another round of layoffs affecting 15% of its workforce.