Seattle-based digital healthcare startup 98point6 recently confirmed a new round of layoffs, although the exact number of employees affected was not disclosed. Several affected workers took to LinkedIn to share their experiences, with one long-time employee calling her layoff an “unplanned departure.” The company, which has approximately 100 employees in the U.S., stated that the workforce reduction was part of a larger action and that some employees transitioned to Transcarent as part of its partnership with the San Francisco-based startup. 98point6 emphasized that it will continue to maintain an appropriate level of staffing as it licenses its software to other healthcare organizations.
The layoffs for 98point6 come after a period of significant growth during the pandemic, which was followed by an abrupt leadership change in 2021 when co-founder and CEO Robbie Cape was pushed out by the board. In July 2022, the company laid off 10% of its workforce to align with the future needs of the business. The decision to sell its virtual primary care business to Transcarent for $100 million in cash and equity marked a shift in focus to becoming a software-only company that licenses its technology to third-party healthcare providers. To support this transition, 98point6 raised $30 million in April 2023 and acquired the remaining assets of Bright.md in January.
The company’s current leadership includes CEO Jay Burrell, who took over after the departure of Cape. Despite these changes and layoffs, 98point6 has remained committed to its new business model and continues to develop new innovations such as data modeling and artificial intelligence. The tech industry as a whole has seen widespread layoffs in recent years, with more than 250,000 tech workers losing their jobs in 2023. While the pace of layoffs has slowed, companies are still shedding jobs in 2024, with more than 74,000 jobs cut at over 250 organizations.
On the GeekWire 200 ranked index of Pacific Northwest startups, 98point6 currently holds the No. 46 spot. The company was recognized with the GeekWire Award for Health Innovation of the Year in 2019 and has raised nearly $300 million in funding. Despite the challenges it has faced in recent years, 98point6 remains focused on its mission of providing digital healthcare solutions through its software while adapting to the changing landscape of the tech industry. With no open positions currently listed on its jobs board, the company is likely navigating the impact of the layoffs and shifts in strategy as it looks toward the future.
