Hinge Health's Workforce Reduction Amid IPO Preparations: A 10% Cut in 1,700-Employee Company

By Business OutstandersPUBLISHED: April 12, 10:31
Hinge Health
Image Credit: Hinge Health

Hinge Health, a company established nine years ago, specializes in providing digital solutions for treating chronic musculoskeletal (MSK) conditions. Recently, the company undertook a workforce reduction of approximately 10%, as confirmed by sources at TechCrunch.

Hinge Health IPO amid Layoff Affects:

The layoffs affected employees across various departments, including engineering, among others. Before this action, Hinge Health boasted a workforce of over 1,700 employees, as estimated on LinkedIn.

In response to inquiries, a company spokesperson stated that the decision to realign the organization was made to ensure long-term sustainability and accelerate the path to profitability. The company expressed gratitude for the contributions of departing team members and emphasized its commitment to supporting them through this transition.

These strategic adjustments come as Hinge Health prepares for a potential IPO and endeavors to achieve profitability. Although the timing of the IPO remains undisclosed, the company previously indicated that it is not under immediate pressure to go public, citing a substantial cash reserve of $400 million.

Hinge Health boasted a valuation of $6.2 billion in October 2021 following a Series E funding round led by Tiger Global and Coatue Management, which raised $400 million. To date, the company has raised a total of $828 million in funding, according to data from PitchBook.

Sword Health, backed by General Catalyst and Khosla Ventures, serves as a primary competitor to Hinge Health in the MSK treatment sector. Sword Health attained a valuation of $2 billion in November 2021.

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