In a strategic move aimed at accelerating its path to profitability, Hinge Health, a leader in digital musculoskeletal care solutions, has confirmed a significant workforce reduction. The company, which is gearing up for a potential IPO, decided to cut approximately 10% of its workforce, affecting employees across various functions including engineering.

According to exclusive insights obtained by TechCrunch, Hinge Health’s recent workforce adjustments are part of a broader initiative to enhance operational efficiency and refocus investment strategies. Prior to this reduction, Hinge Health boasted a workforce of more than 1,700 employees, marking this move as a substantial adjustment within the organization.

In response to inquiries regarding the layoffs, a spokesperson from Hinge Health emphasized the company’s commitment to building a sustainable business model while expressing gratitude for the contributions made by departing team members. The spokesperson highlighted the importance of supporting affected employees through this transition period. The statement read, “To accelerate our path to profitability, speed up decision-making, and better focus our investments, we have made the decision to realign our organization. We are incredibly grateful for all our departing team members’ contributions and are focused on supporting them through this transition”, and added, “As we continue to reimagine musculoskeletal care, we are also committed to building a long-term sustainable business,”

The timing of these workforce changes is notable as Hinge Health has been actively positioning itself for potential public listing. While the company did not provide specific details regarding the IPO timeline, previous statements suggested that Hinge Health was not under immediate pressure to enter the public markets this year, given its healthy cash reserves of $400 million.

Hinge Health’s financial landscape reflects a robust backing from investors, with the company last valued at $6.2 billion in October 2021 following a successful Series E funding round led by Tiger Global and Coatue Management, which raised $400 million. In total, Hinge Health has amassed $828 million in funding, underscoring investor confidence in its digital healthcare approach.
Hinge Health faces competition from players like Sword Health, supported by General Catalyst and Khosla Ventures. Sword Health, valued at $2 billion as of November 2021, represents a formidable rival in this rapidly evolving sector.