Omada Health, Inc., a digital health company, has announced that it has eliminated 20 jobs. The layoffs come from departments across the entire organization. The San Francisco- based firm is one of the most highly funded digital health companies in Silicon Valley, having recently raised another $50.0 million in funding in June.
Omada Health was founded in 2011 and developed an online diabetes prevention program that helps users lower their risk of chronic disease. The company sells its service to self-insured employers and others, helping businesses and health plans prevent and manage chronic conditions.
Since launching in 2011, the startup company has increased its employee count to around 250. That means the 20 layoffs account for just short of 10% of the workforce.
The company recently raised $50.0 million in a round of funding. Adam Brickman, a spokesperson for Omada, said in a statement that the funding was raised, “with the explicit goal of becoming a sustainable, and profitable, healthcare company.” Many have taken this to mean the company is looking to go public and wants to streamline operations and beef up its bottom line.
“During this process, it became clear we had to focus on Omada’s core business and expertise, while orienting the company for long-term success,” the statement continues. “Today we took the difficult but necessary steps that will allow Omada to continue its maturation as a leader in the digital health industry.”
The company said it provided severance packages to all departing employees.
Helmed by CEO Sean Duffy, Omada has raised $126.0 million to date, making it one of the best funded health startups in the San Francisco Bay area. The company has experienced rapid growth, going from 75 employees to 185 after nabbing $48.0 million in Series C funding from existing customers in September 2015. At the time, Bay area customers included Costco stores and Stanford Hospital. Kaiser Permanente, Lowe’s and Iron Mountain are also customers.
That round was in addition to earlier funding of around $29.0 million that came from Norwest Venture Partners, plus a number of other venture capitalists, including Andreessen Horowitz LLC, GE Ventures, and dRx Capital, along with major customers Humana Inc (NYSE:HUM) and Providence Health & Services.
“Omada Health, which has raised more than $120 million, lays off 20 people in bid for profits,” CNBC, June 21, 2017.
“About Us,” Omada Health, Inc., last accessed June 23, 2017.
“S.F. health company lays off 20 as it aims for profitability,” San Francisco Business Times, June 22, 2017.
“Omada Health makes big haul on Series C funding round, some from major customers,” San Francisco Business Times, September 15, 2015.