Health care startup 98point6 lays off 10% of workforce, but says it’s still in ‘growth mode’

(98point6 Image)

Seattle-based 98point6 recently laid off 10% of its workforce, but the telemedicine startup remains in “growth mode,” according to a human resources executive at the company.

The company confirmed the cuts to GeekWire on Thursday, but did not provide any specifics on how many people were let go, which positions were affected, or what prompted the layoffs.

“On July 6th, 98point6 executed a reduction in force to align with the future needs of the business,” Cami Blumenthal, vice president of people, said in an emailed statement. “While we’re disappointed to say farewell to members of our team, we remain in growth mode and are hiring for roles across our medical and technology groups.

“We continue to express gratitude to all the employees impacted by this decision and thank them for their contributions in helping us to achieve our mission of delivering equitable access to primary care,” Blumenthal added.

The startup employs 343 people, according to LinkedIn. A former employee who was part of the recent round of layoffs said on LinkedIn that the entire creative team was slashed. Another former employee said many members of the marketing team were also let go.

Many startups are cutting staff in order to reduce costs and extend runway amid the broader economic downturn. Seattle startups such as Convoy, Flyhomes, Qumulo and Rad Power Bikes have all had rounds of layoffs this year.

Founded in 2015, 98point6 launched to make connecting with a physician as “simple as sending a text or doing an online search.” In 2020, its membership base skyrocketed by 274%, fueled by demand during the pandemic.

The company provides primary care in all 50 states, connecting users in real-time to its doctors alongside an AI-powered chatbot, texts, and digital images. Its customers include giant corporations such as Boeing, as well as many health plans and health systems. It also goes direct-to-consumer.

See also  Why this Florida venture capitalist is touring Seattle’s tech scene

The startup is led by Jeff Greenstein, who became the company’s permanent CEO after taking over interim leadership duties following the departure of former CEO and co-founder Robbie Cape in August.

98point6 ranks 28th on the GeekWire 200, our list of the top tech startups in the Pacific Northwest.

In October 2020, 98point6 raised more than $118 million in a Series E round led by private equity giant L Catterton and late-stage investment firm Activant Capital. Goldman Sachs, an existing investor, also participated. The raise put the company at a $518 million post-money valuation at the time, according to PitchBook.

98point6 has raised more than $250 million to-date.

Hi, I'm Vikky Penn, currently working on msiu.info. This is my personal Blog, where I will share the tips and knowledge that I have learned. If you have any questions, please contact me at Email: [email protected]! Thank you !

Related Posts

Sea.citi merges with WTIA in combination of two civic-focused tech industry nonprofits in Seattle

Former Seattle Mayor Jenny Durkan announced the launch of Sea.citi in 2018. (GeekWire File Photo / Monica Nickelsburg) Sea.citi, a nonprofit that launched in 2018 with the…

Survey: 88% of U.S. startup leaders worried about fundraising, signaling slower growth ahead

Qualtrics / Delighted Graphic New research published Monday quantifies the growing sense of caution among U.S. startup leaders, as economic turmoil creates concerns about cash, and causes…

About to take early stage startup job? Amid concern of downturn, CEO says to ask these hard questions

Kieran Snyder of Textio at the 2019 GeekWire Awards. (GeekWire File Photo) In addition to the usual questions about pay and benefits and culture and so on,…

Why this Florida venture capitalist is touring Seattle’s tech scene

Pablo Casilimas. (Photos courtesy of Casimilias) When Pablo Casilimas gave his girlfriend, a travel nurse, a list of cities he would prefer to live in, he put…

Maveron raises $225M for its 8th fund to back more consumer-focused startups

The Maveron team. (Maveron Photo) The news: Maveron, a venture capital firm founded 24 years ago that invests in consumer-oriented startups, raised $225 million for its eighth…

Tech Moves: Flying Fish adds investor to lead new Canada office; Panopto, magniX hire CEOs

Tiffany Linke-Boyko. (Flying Fish Photo) — Flying Fish hired Tiffany Linke-Boyko as principal to lead a new Alberta hub, its first office outside of Seattle. The firm…

Leave a Reply

Your email address will not be published.