You must be aware about the big shift in healthcare industry that we are undergoing right now at least in the tier 1 countries where people are switching from in-person clinic visits to just getting diagnosed on telehealth. Now, it is known that supply should meet demand and that is the reason why there are so many telehealth startups being started all around the world. There is one startup based out of Israel which is known as TytoCare and it has raised about $155 million till date. However, it looks like things are not well at the company as the startup has just announced that it will have to layoff 10% of its employees. TytoCare currently has 200 employees which means it will lay off 20 of its employees which also suggests that some department at the company is being closed.
After the announcement of layoffs at the company, the company also released a statement discussing the situation in further detail. TytoCare said, “At a time when the financial markets have undergone significant changes, we are compelled to make certain personnel adjustments and bid farewell to some wonderful people. Nevertheless, our company remains committed to pushing technological boundaries in the field of digital home medicine, expanding our customer base, hiring necessary personnel, and revolutionizing medical service practices in Israel and worldwide.”
From the statement, it is clear that the company is not able to sustain the financial pressure due to market conditions. TytoCare develops a device for remote health monitoring and it is known that “TytoCare’s device allows for accurate long-distance interaction between doctor and patient, helping health services provide data-driven healthcare, asynchronous services, virtual primary care, and remote monitoring”.
At the moment, we are not seeing a while lot of lay offs happening at the various startups around the world including in the telehealth sector but it is known that the market conditions are still the same as they were a few months. It is known that a lot of countries are going through recession as well which means that we might see similar announcements from other startups going forward. It is to be noted that the layoffs by TytoCare are mostly in Israel where it employees majority of its employees.
