Teladoc Health Cuts 300 Jobs to Shave Costs
(Reuters) – Teladoc Health Inc said on Wednesday it has removed “redundant roles” and cut 300 jobs, or 6% from its non-clinician global workforce, as the company plans to prioritize its commercial businesses in a challenging demand environment.
“We’ll be making meaningful expense reductions this year while reinvesting other resources in more focused ways”, Chief Executive Officer Jason Gorevic said in a letter to employees.
Teladoc said the actions will help the company pivot its focus to primary care unit Primary360, chronic conditions monitor Chronic Care as well as its online counseling platform BetterHelp, which has been a growth driver.
These job cuts have resulted from a combined implementation of the telehealth company’s restructuring plans and previously announced cost-saving measures, some of which were implemented in the fourth quarter of 2022.
The restructuring process has also resulted in a reduction of office spaces in certain markets, and Teladoc will further review its real estate footprint under the cost-management drive.
Teladoc said it will record $4.4 million of the total $21.4 million of charges related to these measures taken in the fourth quarter, but does not expect them to have a material impact on its annual results.
Teladoc shares rose marginally to $28.5 in premarket trading.
(Reporting by Khushi Mandowara and Bhanvi Satija in Bengaluru; Editing by Nivedita Bhattacharjee and Sherry Jacob-Phillips)
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