Inhabitants well being expertise firm Coloration introduced it had laid off employees because it pivots focus away from COVID-19 testing.
Based on posts by former workers on LinkedIn, the corporate lower 300 jobs. Coloration CEO Othman Laraki confirmed the layoffs in his personal submit, saying the corporate was downsizing its groups targeted on COVID-19 testing given the looming finish of the general public well being emergency and decreased buyer curiosity in pandemic-related providers.
Laraki mentioned the corporate would deal with its testing and telehealth infrastructure for presidency packages, and likewise its prevention instruments for employers and healthcare purchasers.
„Amidst change, we’ll proceed to assist current packages and improve entry for underserved populations. With a reinvestment in our core enterprise and the belief of our prospects, we’re targeted on delivering excessive entry, excessive impression inhabitants healthcare packages that assist everybody lead the healthiest life that science and medication can provide. Whereas yesterday was a tough day for our workforce, we’re optimistic about our future as an organization and the impression we could have,“ he wrote.
THE LARGER TREND
Coloration raised two giant rounds of funding in 2021, together with a $167 million Collection D and a $100 million Collection E. The corporate, which beforehand targeted on genomics earlier than pivoting to public well being tech, added behavioral well being providers with the acquisition of Temper Lifters final 12 months.
Layoffs at digital well being and well being tech firms surged in 2022, together with at startups that had raised vital quantities of investor {dollars} in 2021.
A declining deal with COVID-19 has additionally impacted some firms. Lucira Well being, which develops house diagnostic assessments, lately filed for chapter simply as the corporate acquired the primary Emergency Use Authorization from the FDA for an over-the-counter at-home mixture COVID-19 and flu check. The corporate mentioned the regulatory course of had taken longer than it anticipated and demand for its COVID-19 assessments had slowed in 2022.
