S.F. startup Carbon Health to cut 56 more medical jobs
Carbon Health’s business boomed during the pandemic as patients flocked to clinics for coronavirus tests and vaccines. Revenue quintupled and the San Francisco startup was valued at over $3 billion in 2021.
But, with COVID receding, the company is conducting its fourth layoff round since 2022, cutting 56 medical jobs across California, according to a state filing. Carbon Health’s general counsel cited an “economic restructuring that is necessary for the long-term health of the company.”
“We have made the difficult decision to reduce our workforce and align clinical staffing to post COVID-19 demand levels. It’s important to note that we have done so in specific locations, and as we move forward, we will continue to focus on improving our core Urgent and Primary Care services,” the company told the Chronicle.
Layoffs will commence on March 12 and affect physicians, medical assistants and nurses, including 10 employees in San Rafael, seven employees in San Francisco and the rest in Southern California.
The company previously laid off 50 California employees in October, including 14 in the Bay Area, as well as 226 employees in January 2023, according to state filings. Around 250 employees were laid off in 2022. The company had more than 2,000 employees at its peak.
Other health care companies have also downsized as COVID trends have declined. The startup Color cut around 300 jobs in early 2023. Earlier this month, Amazon’s job cuts included hundreds of layoffs in its pharmacy and San Francisco-based One Medical health care division.
The Information reported last October that Carbon Health’s COVIDrelated revenue plunged from around $138 million in 2021 to “zero” last year, and overall revenue fell 23% from 2021 to 2022.