Seattle and Philadelphia area-based primary healthcare company Accolade is cutting its workforce and closing or reducing some facilities, according to a recent regulatory filing.
A company spokesperson declined to say how many Accolade workers are affected by the reductions. Accolade had about 2,350 employees as of February 2022. The publicly traded company still plans to hire, the filing noted.
Founded in 2007, Accolade provides healthcare delivery, navigation, and advocacy services through employers.
The company went public in 2020 with a $220 million IPO and the following year acquired virtual care startups PlushCare for $450 million and 2nd.MD for $460 million. In February of last year, Accolade had more than 10 million members through 600 employer customers.
Accolade reported $90.9 million in revenue for its most recent fiscal quarter, up 9% from the previous year. Losses were $39.9 million for the quarter, compared to net income of $22.5 million in the year-ago period.
After hitting record-highs around $60 per share, Accolade’s stock dropped significantly through 2021 and into the first half of last year. It fell sharply in April after the company said it was losing Comcast as a customer.
The stock closed Monday at $12.83 per share. The company’s market capitalization is below $1 billion.
Accolade on Monday announced a partnership with mental health services provider Lyra Health to its Trusted Partner Ecosystem.
Accolade is expecting annual revenue between $361 million and $365 million for its 2023 fiscal year and estimating $410 million for 2024.
Accolade’s workforce reductions come amid wider layoffs in tech and life sciences companies nationwide and in the Seattle area. However, healthcare workers remain in demand and healthcare group Providence was the top business hiring in Washington state in December, the Seattle Times reported.
Accolade has additional offices in San Francisco, Santa Monica, Scottsdale, Houston and Prague, according to its website. The company lists 62 job openings on LinkedIn.
There are a number of other tech-focused players in the healthcare sector, including Amazon, which recently closed its $3.9 million acquisition of primary care company One Medical.
98point6, a Seattle startup that provides virtual primary care services, announced a $100 million deal on Monday with Transcarent, which will acquire part of the company’s business.
