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