Hinge Health, a nine-year-old company that specializes in providing a digital solution for chronic musculoskeletal (MSK) conditions, has recently announced that it will be reducing its workforce by approximately 10%. This decision has affected employees across various functions within the company, including engineers. Prior to the layoffs, Hinge Health employed over 1,700 individuals as estimated by LinkedIn.
In response to the layoffs, a spokesperson for the company issued a statement expressing their commitment to reimagining musculoskeletal care while also building a sustainable business for the long term. The decision to realign the organization was made to accelerate the path to profitability, facilitate quicker decision-making, and better concentrate investments. The company emphasized its gratitude for the departing team members and its dedication to supporting them through the transition period.
These layoffs come at a time when Hinge Health is preparing for a potential IPO and working towards achieving profitability. While no specific timeline for an IPO has been disclosed, the company has stated that it has no immediate pressure to go public this year as it still maintains $400 million in cash reserves. In October 2021, Hinge Health raised $400 million in Series E funding led by Tiger Global and Coatue Management, bringing its total valuation to $6.2 billion. To date, the company has raised a total of $828 million according to PitchBook data.
Hinge Health faces competition from Sword Health, another competitor backed by General Catalyst and Khosla Ventures which achieved a valuation of $2 billion in November 2021. Both companies are vying for market share in the growing digital solutions space aimed at addressing MSK conditions.
