Telehealth Weight-Loss Startup Calibrate Health announces 18% of layoffs

You must have seen that the one thing that has become a trend in the industry, and more so in the technology sector, is to mass layoff employees because of the fact that there is a looming threat of recession in the industry as well as the economic situation that has been caused after the pandemic and the overhiring that these companies did during the peak of the pandemic. However, we were not sure if the same effect of these tech layoffs would be seen in the telehealth sector as well. Because of the fact that telehealth startups can still be functioning even after the pandemic, as this could be a benefit for patients.

However, the fears of telehealth sector also getting affected by these layoffs has come true and we are not glad to report that a weight-loss telehealth startup named Calibrate Health has announced laying off 18% of its workforce. This time around, the layoff has been announced as Calibrate Health is doing a pivot its business model due to growing competition in the sector. Basically, Calibrate Health is pivoting from providing obesity drug prescriptions to general public to providing services for big companies for their employees’ benefits.

“Calibrate is accelerating our transformation into an Enterprise-first business,” Calibrate said while adding, “We will continue to grow our direct-to-consumer business responsibly.”. The statement tells you that the company is not totally shifting from D2C to B2B business but it is expanding its reach to other avenues as well. According to an employee from Calibrate Health, around 100 employees will be laid off due to the latest round which is also the second round of layoffs in just nine months at the company.

Calibrate Health is also one of the first company to prescribe weight loss drugs like Ozempic and Wegovy to its patients which have now been trending on TikTok due to even Elon Musk admitting that he took them to shed extra kilos. However, it is worth noting that the challenges these startup face are the cost of these medicines is quite high and the insurance coverage for it is not where it should be right now.


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