Hinge Health, a company specializing in digital solutions for chronic musculoskeletal (MSK) conditions, recently made the decision to reduce its workforce by approximately 10%. This move comes as the company aims to streamline its operations and increase profitability. The affected employees held various roles within the organization, including engineering positions. Before the layoffs, Hinge Health boasted a workforce of over 1,700 employees.
In a statement, a spokesperson for Hinge Health emphasized the company’s commitment to building a sustainable business while reimagining musculoskeletal care. The decision to realign the organization was made with the intention of accelerating the path to profitability, expediting decision-making processes, and allocating investments more effectively. The spokesperson expressed gratitude for the contributions of the departing team members and assured that support would be provided during this transitional period.
Hinge Health’s plans for an initial public offering (IPO) are still underway, although the company did not provide specific details regarding the timing of this event. Notably, Hinge Health has reassured stakeholders that it is not under pressure to go public this year, as it currently possesses $400 million in cash reserves. This financial cushion allows the company to approach the IPO process strategically.
During its most recent funding round in October 2021, Hinge Health secured a valuation of $6.2 billion. The company raised $400 million in a Series E financing round led by Tiger Global and Coatue Management. In total, Hinge Health has raised $828 million in funding, according to data from PitchBook.
Sword Health, a competitor of Hinge Health, is backed by General Catalyst and Khosla Ventures. As of November 2021, Sword Health was valued at $2 billion. Both companies are vying for a significant share of the digital MSK treatment market and are likely to continue competing fiercely in the coming years.
In summary, Hinge Health’s recent workforce reduction aims to optimize its operations as it moves towards an IPO and strives for profitability. The company remains well-positioned in the market, with substantial funding and a strong focus on revolutionizing musculoskeletal care. While challenges lie ahead, Hinge Health is determined to navigate them successfully and provide effective digital solutions for individuals suffering from chronic MSK conditions.
