In recent news, Hinge Health has announced that it will be reducing its workforce by approximately 10%. The company, founded 9 years ago and known for providing digital solutions for chronic musculoskeletal (MSK) conditions, made the decision to realign its organization in order to accelerate its path to profitability. The layoffs affected employees across various roles within the company, including some engineers. Prior to the cuts, Hinge Health employed over 1,700 individuals.
In a statement addressing the layoffs, a spokesperson for Hinge Health emphasized the company’s commitment to building a sustainable business in the long term. The decision to reduce the workforce was made in order to streamline decision-making processes and focus investments more effectively. The company expressed gratitude for the contributions of the departing team members and pledged to support them through the transition.
These layoffs come as Hinge Health prepares for an initial public offering (IPO) and its goal of achieving profitability. While there is no rush to go public this year, with $400 million in cash reserves, the company has stated that it still plans to achieve profitability soon. Hinge Health was valued at $6.2 billion in October 2021 after raising $400 million in a Series E funding round led by Tiger Global and Coatue Management. In total, the company has raised $828 million in funding according to PitchBook data.
One of Hinge Health’s main competitors is Sword Health, which was valued at $2 billion in November 2021 and is backed by General Catalyst and Khosla Ventures.
