Miami-based Cano Health plans to cut about 700 workers, or almost one-fifth of its workforce, and seek a sale of the company amid concern it may not survive within the next year.
The value-based primary care provider, which has seen the stepping down of its CEO in recent months after a battle between major shareholders seeking his ouster, said it will reduce its workforce by about 700 people, or 17 percent of employees, during the third quarter of 2023.
That move is expected to save Cano Health approximately $50 million per year. Its operating loss for the second quarter totaled $245.6 million.
"The company currently believes that this amount of liquidity is not sufficient to cover the company's operating, investing and financing uses for the next 12 months," Cano said in a statement. "Management has concluded that there is substantial doubt about the company's ability to continue as a going concern within one year."
Cano Health, which also plans to exit operations in multiple states, said it has engaged advisers to assist in a sale process.
Shares in the company, which traded at almost $9 last October, were at $1.52 as of Aug. 11.