Hybrid primary care company Carbon Health has laid off 114 employees as it adjusts to plunging revenue from COVID-19 care.
Carbon Health has primary and urgent care clinics across the country, and also offers telehealth through its proprietary mobile app and EHR. The company also went big on COVID-19 testing and offered its software for vaccination campaigns.
The company notified the state of California that it had laid off 199 employees Oct. 9, but a Carbon Health spokesperson told Becker's that some workers stayed on in other roles. The cuts amounted to 5% of its workforce.
"We made the difficult decision to reduce our workforce and align clinical staffing to post-COVID-19 demand levels," the spokesperson said. "As we move forward, we're continuing to focus on growing and improving our core urgent and primary care services."
In 2021, Carbon Health's revenue quintupled from the year before to nearly $230 million, with 60% of it coming from COVID-19 testing and vaccine initiatives, The Information reported Oct. 23. The company was valued at roughly $3 billion that year.
But its total revenue declined 23% in 2022, and dropped again in the first half of this year, as its COVID-19 sales zeroed out, according to the story.
Carbon Health has raised $622.5 million to date, according to Crunchbase, including $100 million from CVS Health Ventures in January. It previously laid off more than 200 staffers in January and 250 employees in mid-2022.
"We deeply appreciate the contributions of every employee who has been part of Carbon Health and our mission to make great healthcare accessible to all," the spokesperson told Becker's. "These employees are incredibly talented and passionate about making an impact."