Redesign Health, a company that launches healthcare startups, has laid off 20 percent of its staff a month after raising $65 million, Fast Company reported.
"This move by Redesign was not financially driven — or was something that was related, connected to, or a requirement of the recent round raise," a company spokesperson told the news outlet. The spokesperson confirmed that 67 employees in the firm's engineering, product, marketing and recruiting teams would be affected. Redesign Health continues to hire in some departments.
The company has helped launch more than 40 healthcare startups, and its latest funding round brought its valuation to $1.7 billion, according to the Oct. 10 story. That investment was led by General Catalyst and also included UPMC Enterprises and CVS Health Ventures.
In an email to employees, CEO Brett Shaheen said the cuts were part of the company's "ongoing evolution … given the need to prioritize in a challenging market," Fast Company reported. "Through this, we believe we can create greater impact for our founders and partners," he wrote.