Olive, a Columbus-based provider of health technology, has revealed it will cut 450 staff.
The company said the cuts are “based on the realities of today’s economy.”
The workers were informed that their employment will end right away.
However, they will be paid for 60 days, receive benefits, and be qualified for two weeks of severance compensation for each year of service.
Sean Lane, who founded Olive in 2012 said: “This is the most difficult decision I’ve had to make as CEO,”
“But I make it knowing this is the right strategy for us to deliver on Olive’s mission. I’m inspired by what we have done and will continue to do to ensure Olive’s transformative impact for many years to come.”
Olive employed about 1,300 workers before the layoffs.
The business saw fast growth throughout the pandemic while still enabling the majority of its workers to work from home thanks to its technology that connects health care providers and insurance companies with client information.
The business obtained $400 million in capital a year ago when its worth was $4 billion.
Lane explained the layoffs in a memo to the workers as a result of the business’s too ambitious expansion.
He wrote: “We’ve grown rapidly over the last several years in service of creating a new healthcare experience for humankind,”
“The realities of today’s economy are forcing us to rethink this approach. While we are experiencing many of the same headwinds as other organizations — including shifts in the industry landscape, evolving customer expectations, and challenging market conditions — we also must reconcile the missteps we made.
“Going forward, that one thing is the critical connection between providers and payers, starting with Autonomous Revenue Cycle for providers and Utilization Management Transformation for payers,” which Lane said accounted for 80% of the company’s revenue.
An Olive spokesperson said the layoffs will not impact the long-term goals for Olive’s plans for a new HQ in Worthington but may impact the timetable.
The spokesperson said: “We are moving forward with our commitment to our new HQ in Worthington. This is a long-term investment that will support our vision and strategy.
“However, our planned investments for immediate improvements to this property will be scaled back.”
Olive joins several Columbus-area companies to announce layoffs this year, including Root Insurance, OhioHealth and Victoria’s Secret.
What is Olive?
Olive is the automation company creating the “Internet of Healthcare” which aims to address healthcare’s most burdensome issues with intelligent automation
Where it is headquartered? The company is headquartered in Columbus, Ohio
How many staff does it have? Olive has 1,400 employees
What is its annual revenue? Olive’s revenue is $294 Million