Hinge Health, a virtual physical therapist, cuts 10% of its employees during layoffs

Hinge Health, a virtual physical therapist, cuts 10% of its employees during layoffs

Hinge Health, a company that provides a digital solution for treating chronic musculoskeletal conditions, recently announced a workforce reduction of approximately 10%. The company, which is nine years old, stated that the employees who were laid off worked across various functions, including engineering. Prior to the layoffs, Hinge Health employed over 1,700 individuals.

In a statement, a company spokesperson explained that the decision to realign the organization was made in order to accelerate the path to profitability, streamline decision-making, and focus investments more effectively. The company expressed gratitude for the departing team members and is dedicated to supporting them through the transition.

The layoffs come as Hinge Health prepares for an IPO and aims to achieve profitability. While the company did not disclose a specific timeline for the IPO, it mentioned that there is no urgency to go public this year as they still have $400 million in cash reserves. Hinge Health last received a valuation of $6.2 billion in October 2021 after securing a Series E funding round of $400 million from Tiger Global and Coatue Management.

Hinge Health’s primary competitor is Sword Health, which is backed by General Catalyst and Khosla Ventures and was valued at $2 billion in November 2021. Despite the recent layoffs, Hinge Health remains focused on its mission to provide innovative digital solutions for treating musculoskeletal conditions and achieving long-term success.

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