GoodRx to put off 16% of its workforce

GoodRx, an organization finest identified for its prescription value transparency instruments, will lay off roughly 140 staff, making up about 16% of its workforce.

In response to a submitting with the Securities and Trade Fee, the discount will primarily have an effect on its technology-focused and advertising segments.

“The corporate is concentrated on effectively rising its core prescriptions enterprise, accelerating its pharma producer options enterprise and doubling down on shopper engagement,” Karsten Voermann, GoodRx’s chief monetary officer, wrote within the SEC submitting. “As the corporate focuses on these objectives, it’s consolidating features and eliminating or decreasing funding in areas of decrease focus.”

THE LARGER TREND

GoodRx posted a $1.4 million internet loss in the course of the second quarter, in contrast with $31.1 million in earnings in the course of the prior-year quarter. It reported income of $191.8 million, a 9% enhance from $176.6 million within the second quarter final yr. 

The corporate additionally stated it had resolved an challenge with an unnamed nationwide grocery chain – which analysts suspected was Kroger – that had affected the acceptance of pharmacy profit reductions for some medication. 

Throughout its second quarter earnings name, GoodRx stated it was specializing in growing new companies and incentives to make sure customers would create accounts on their platform, which it would not require to supply a “frictionless” expertise. 

“We consider the advantages of deeper relationships with our customers will permit us to assist them higher navigate their healthcare journey with much more compelling GoodRx worth proposition and person expertise,” cofounder and co-CEO Trevor Bezdek stated. 

“We additionally consider that permitting customers to supply us extra info will enhance the LTV [lifetime value] of every person in prescription transactions and different areas of the enterprise over time as we leverage it to create new instruments and merchandise for our customers in quarters and years to come back.” 

GoodRx’s announcement marks the most recent in a line of digital well being and well being tech corporations which have laid off staff this summer time. Insider just lately reported that telehealth companies vendor Wheel reduce 17% of its workforce in mid-August. 

AI-backed genomic and scientific knowledge firm Sema4 introduced it had laid off round 250 staff, about 13% of its workforce, final month. Its founder Eric Schadt additionally stepped down from his roles on the firm. Meditation app Calm additionally just lately let go of 20% of its staffers. 

Others saying layoffs over the previous few months embrace Pear Therapeutics, Included Well being, Olive, Cedar, Ro and Carbon Well being.