Technology

Digital health unicorn Truepill conducts third round of layoffs in 2022 – TechCrunch

Truepill, a platform which helps another company provide diagnostics, telemedicine services and prescriptions, has implemented its third layoff in a series of downsizing, TechCrunch sources report. The layoff affected about a third of the company, or 175 employees.

According to a source, Truepill’s entire UK team has been made redundant, as well as a significant part of the virtual pharmacy platform’s product team. The data team has also been impacted, while the company’s diagnostic and telemedicine components — its core services — will see little future support. Affected employees were told via a Zoom call that they had lost their jobs and some were told severance details would be announced in the next few days.

Truepill’s next chapter will be the pharmacy operations portion of the business, a return to form after Truepill’s frantic COVID-19 product sprint. When Truepill first launched, it billed itself as the AWS for pharmacies, powering companies like Hims, Nurx, LemonAID, and other direct-to-consumer healthcare brands.

Over time — and through various rounds of funding — Truepill saw opportunities in selling diagnostic and telemedicine services. Eventually, it expanded beyond brands that directly serve consumers and targeted institutions such as healthcare plans, life science companies and providers.

Today’s move is in stark contrast to how Truepill characterized its business just months earlier; then it appeared to be in a position of misdemeanor, the company claimed to have $300 million in revenue in 2021.

In an all-hand with those remaining at the company, sources said that CEO and co-founder Sid Viswanathan spoke about the digital health company’s need to hold a Series E round or an extension of its Series D round in $142 million to be raised The tranche closed in October 2021. As part of that funding, Truepill was valued at $1.6 billion, officially entering unicorn territory.

In April, Truepill stopped prescribing ADHD drugs amid growing digital health concerns. The service disruption impacted employees at adult ADHD treatment company Ahead, which Truepill recently acquired. Truepill was reportedly the preferred pharmacy partner of Cerebral, which is under federal investigation following allegations that employees felt pressure to prescribe drugs to customers.

In June, Viswanathan confirmed that he had laid off another 15% of the workforce, affecting 150 people. Viswanathan said in a letter that the company is “focused on defining a new category in healthcare and driving revenue growth,” but importantly, the company is “working with a new level of financial discipline and prioritization to ensure the longevity of Ensuring Truepill for both our customers and our teams.”

With today’s layoffs, the company is focused on boosting the morale of the remaining workforce. Sources say Truepill will now conduct earnings surveys for all employees to ensure everyone is being paid appropriately. In addition, the remaining employees will receive two days for mental health. Viswanathan informed employees that he would send managers to meet employees in small groups in person.

Just weeks before Truepill’s layoffs, the company announced the hiring of Paul Greenall as chief business officer, the first person to hold the position since inception. In April, Truepill hired its first CFO, Ana Wardrobe.

In the meantime, resources for affected Truepill employees remain in flux. A Slack group of former Truepill employees reveals those affected by previous layoffs are struggling to get clarity on severance pay and access to land for health care.

https://techcrunch.com/2022/08/11/digital-health-unicorn-truepill-conducts-third-round-of-layoffs-in-2022/ Digital health unicorn Truepill conducts third round of layoffs in 2022 – TechCrunch

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