Virtual physical therapy provider Hinge Health has recently laid off approximately 10% of its workforce, according to exclusive information obtained by TechCrunch.
The Decision Behind the Layoffs
The nine-year-old company, known for its digital solutions aimed at treating chronic musculoskeletal (MSK) conditions, made this move as part of a strategic realignment effort to ensure long-term sustainability and accelerate its path to profitability. The layoffs affected employees across various functions, including engineering, within the company, which previously boasted a workforce of over 1,700 individuals, as estimated by LinkedIn.
In a statement addressing the layoffs, a spokesperson for Hinge Health emphasized the company’s commitment to reimagining musculoskeletal care while acknowledging the necessity to streamline operations for greater efficiency and focus. The company expressed gratitude for the contributions of departing team members and assured support during their transition.
How Is Hinge Health Planning for the Future?
The decision to reduce its workforce coincides with Hinge Health’s preparations for a potential Initial Public Offering (IPO) as it aims to achieve profitability. While the company did not provide specific details regarding the IPO timeline, it clarified that it is not under immediate pressure to go public this year, citing a healthy cash reserve of $400 million.
Hinge Health’s valuation stood at $6.2 billion as of October 2021 following a $400 Series E funding round led by Tiger Global and Coatue Management. To date, the company has amassed a total of $828 million in funding, according to data from PitchBook.
Hinge Health faces competition primarily from Sword Health, backed by investors such as General Catalyst and Khosla Ventures, which offers similar virtual physical therapy solutions. Sword Health was last valued at $2 billion in November 2021, positioning it as a significant player in the digital MSK treatment landscape.
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Featured Image courtesy of Hinge Health