Teladoc Health is laying off 300 employees or 6% of its workforce, CEO Jason Gorevic said in an email to employees Wednesday.
Gorevic said the telehealth company is eliminating redundant non-clinical roles that resulted from its $18.5 billion acquisition of digital health company Livongo Health in 2020. He also said the company is pushing towards a path to profitability.
“These actions put us on an even stronger financial footing at a time when many of our competitors are questioning their ability to keep their doors open,” Gorevic said in the email.
The layoffs follow a challenging 2022 for the company. It recorded a $9.8 billion net loss for the first three quarters of the year, largely because of a $9.6 billion goodwill impairment charge related to the Livongo merger. Its stock price has sunk from its high of $296.66 a share in February 2021 to $28.22 a share at Tuesday’s close.
At last week’s J.P. Morgan Healthcare Conference, Gorevic referenced what he said was the company’s competitive advantage over rival telehealth providers to weather economic headwinds.
“Many of the small competitors out there, whether they’re public or private, lack the scale to deliver strong financial results consistently,” Gorevic said. “There are a lot of virtual care companies out there that are more narrowly focused, smaller in scale and are nipping at the edges of single [software] solutions.”