Ro lays off 18% of staff despite narrowing focus, raising additional capital

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Rothe medical unicorn, which last raised $150 million just a few months ago at a $7 billion valuation, has cut 18% of its workforce to “manage costs, improve the efficiency of our organization and better align our resources with our current strategy,” management wrote. in an email obtained by TechCrunch and confirmed by multiple sources.

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“Due to our commitment to protecting patient health information, there will be no transitional period for those who leave the company,” the email said. “We know this can come across as harsh and we hope you can find alternative ways to get in touch to say goodbye to your teammates.” Affected employees will receive two months’ severance pay and employment assistance. Medical Unicorn offers two months of paid medical benefits.

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In the email, management says it has taken steps over the past six months to prepare for a possible downturn, including narrowing focus and raising additional capital.

TechCrunch reached out to Ro for confirmation and additional comments, but did not immediately receive a response.

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Ro’s decision to lay off people came after several executives left the company, including Ro COO George Coveos, Ro Pharmacy CEO Steve Buck, and most recently Modern Fertility co-founder Afton Vecheri. Rumors of Vechery’s departure, which came about a year after her company was acquired by Ro, have been circulating for more than six months, initially prompted by employee exits that peaked last year. At the time, former and current employees spoke of rising tensions at Ro caused by the health technology company’s inability to generate significant revenue from new products.

In a previous email sent to employees, Ro’s management stated that they would be putting “more energy and resources into fewer initiatives” through the end of the second quarter and second half of the year. “Narrowing the focus does not mean that we will launch fewer products or services for patients. In fact, we believe it will backfire. We will increase the rate of innovation for patients,” the memo says, which also notes that “new products for existing patients” will be created.

“The mantra for the rest of the year (and possibly longer) will be disciplined growth,” the email reads. A very different feeling than last year, when the company aimed to become the “Amazon of healthcare.”


Credit: techcrunch.com /

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