Last year, the digital-health industry was flying high.
Digital-health startups in the US banked a record $29.1 billion in 2021, almost double 2020's record of $14.9 billion.
Now, some of those same startups are scrambling to avoid an Icarus moment. Multiple digital-health companies that recently pulled in hefty funding rounds are cutting their staff.
Jordan Nof, a cofounder and managing partner at Tusk Venture Partners, told Insider in June that many of these companies are beginning to lay off employees because they grew too quickly last year when capital was widely available, or because that environment allowed them to take risks with new product lines that haven't been successful.
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Either way, he said, it's not necessarily a sign of a company that's in trouble — as long as the workforce cuts aren't a last resort.
"If it's handled appropriately early enough, it can be very beneficial for that business, and it can be the difference between making it or not," he said. "The longer you wait, the less cost savings you're going to have."
Here are the digital-health startups that have announced layoffs this year, as of December 20:
Have a tip about digital health layoffs that you want to share? Contact Rebecca Torrence at rtorrence@insider.com, through secure messaging app Signal at +1 423-987-0320, or Twitter DM at @RebeccaTorrenc5.
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This story was initially published on June 16. It was most recently updated on December 20 to add layoffs at SonderMind and Headspace Health.
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