Hinge Health, a nine-year-old company that offers a digital solution to treat chronic musculoskeletal (MSK) conditions, has made a significant decision that will greatly impact its workforce. The company has confirmed that on Thursday, approximately 10% of its employees were let go, as first reported by TechCrunch.
The cuts affected team members from various departments, including engineering, as confirmed by employees on LinkedIn. Prior to the layoffs, Hinge Health boasted a team of over 1,700 employees, according to an estimate from LinkedIn.
“As we continue to reimagine musculoskeletal care, we are also committed to building a long-term sustainable business,” a company spokesperson said in a statement. “To accelerate our path to profitability, speed up decision making, and better focus our investments, we have made the decision to realign our organization. We are incredibly grateful for all our departing team members’ contributions and are focused on supporting them through this transition.”
The layoffs come as Hinge Health is preparing for its upcoming IPO and striving to achieve profitability. However, the company has not disclosed any details about the exact timing of the IPO. In a previous statement, Hinge Health stated that it is not under pressure to go public this year as it still has $400 million in cash reserves.
In October 2021, Hinge Health was valued at $6.2 billion after receiving $400 million in Series E funding from Tiger Global and Coatue Management. This brings Hinge’s total funding to $828 million, according to data from PitchBook.
While Hinge Health is a major player in the digital healthcare industry, it is not without competition. Sword Health, backed by General Catalyst and Khosla Ventures, is a key competitor. The company was last valued at $2 billion in November 2021.
