Primary care disruptor Carbon Health laid off 250 employees June 1 because of market volatility and declining COVID-19-related business, its chief executive said.
The move affects 8 percent of the San Francisco's based company's global workforce, CEO Eren Bali wrote in a blog post.
"For the last few years, we have been more focused on topline revenue growth, patient acquisition, patient retention and service expansion, and we have been less focused on profitability," Mr Bali wrote. "While that was the right decision in 2020 and 2021, the macro environment with more volatile capital markets means it is vital that we become less focused on growth and more focused on profitability."
Carbon Health, which offers a hybrid primary care model of bricks and mortar and telemedicine, has raised more than $500 million, joining a growing number of primary care disruptors in the market. Mr. Bali said the company's "core business" quadrupled last year and is expected to double in 2022, but the startup had made significant revenue from coronavirus care.
"As COVID is entering a new phase, we are winding down some of those COVID-specific lines of business and that, unfortunately, means parting ways with some colleagues," he wrote.