Hinge Health, a nine-year-old company that offers a digital solution for treating chronic musculoskeletal conditions, recently announced a workforce reduction of approximately 10%. The affected employees worked across various functions, including engineering. Prior to the layoffs, Hinge Health employed over 1,700 individuals.
The decision to realign the organization was made in order to accelerate the path to profitability and streamline decision-making. According to a company spokesperson, the company expressed gratitude for the departing team members and is dedicated to supporting them through the transition.
Hinge Health is preparing for an IPO and aims to achieve profitability. While there is no specific timeline for the IPO, it mentioned that there is no urgency this year as they still have $400 million in cash reserves. In October 2021, Hinge Health received a valuation of $6.2 billion after securing a Series E funding round of $400 million from Tiger Global and Coatue Management.
Despite recent layoffs, Hinge Health remains focused on its mission to provide innovative digital solutions for treating musculoskeletal conditions and achieving long-term success. Its primary competitor is Sword Health, which received a valuation of $2 billion in November 2021 and is backed by General Catalyst and Khosla Ventures.
