Redesign Health, which helps create and invests in healthcare startups, laid off 77 employees on Tuesday.
In an email to employees, Redesign Health CEO Brett Shaheen said the restructuring is due to slower than expected recovery in the U.S. venture capital market that has affected the pace of new company creation.
Read more: Digital health funding drops to lowest levels since 2019
Redesign Health declined to disclose its number of employees prior to the cuts. In April, the company posted a blog on its website that said it had around 200 employees.
This is the second major job reduction by Redesign in 16 months. In October 2022, the company laid off 67 people, 20% of all employees at that time. Redesign said those job cuts were not financially driven but related to its strategic evolution.
Redesign has launched around 50 companies since 2018, although only 30 are on its website. Others are in development and haven’t been launched publicly, a Redesign spokesperson said in October. Once Redesign companies reach a certain funding stage, they are largely expected to function autonomously.
Redesign said it will continue to support its current companies and continue creating new ones. Since it launched in 2018, Redesign has received $165 million in funding for itself and raised $250 million for its portfolio companies.
The company has caught the attention of several high-profile investors. Pittsburgh-based University of Pittsburgh Medical Center has invested in Redesign and launched a perioperative care startup with it. Other investors include CVS Health Ventures, General Catalyst and Declaration Partners, a firm backed by billionaire David Rubenstein.
