Hinge Health recently announced that it will be reducing its workforce by approximately 10%, with employees across various functions being affected. This includes engineers, according to posts on LinkedIn. Prior to the layoffs, the company had over 1,700 employees. In a statement, a company spokesperson expressed the need to realign the organization in order to build a sustainable business and focus on profitability. They emphasized their gratitude for the departing team members and their commitment to supporting them during the transition.
The decision to reduce its workforce comes as Hinge Health prepares for an initial public offering (IPO) and works towards achieving profitability. While the company did not provide a timeline for the IPO, they have $400 million in cash on their balance sheet. Hinge Health was last valued at $6.2 billion in October 2021 after raising a $400 Series E round of funding from Tiger Global and Coatue Management. The company has raised a total of $828 million to date, according to PitchBook data.
Hinge Health’s main competitor in the market is Sword Health, which was valued at $2 billion in November 2021 and is backed by General Catalyst and Khosla Ventures. The competition between these companies continues to drive innovation in the digital solutions for treating chronic musculoskeletal conditions.
