Cityblock Health, a tech-driven healthcare company that provides care to underserved populations, laid off 155 employees on Thursday, June 8, 2023. The layoffs, which represent 12% of the company’s workforce, come as Cityblock focuses on ramping up payer partnerships and accelerating its path to profitability.
“We are making this difficult decision to right-size our business as we enter our next phase of growth,” said Toyin Ajayi, M.D., CEO and co-founder of Cityblock Health. “We are grateful for the contributions of our affected employees and are providing them with severance packages, extended medical insurance through COBRA, and mental health support.”
Cityblock Health was founded in 2017 and has raised nearly $900 million in funding. The company has operations in New York City, Chicago, and Los Angeles. It provides primary care, behavioral health, and social services to Medicaid and lower-income Medicare beneficiaries.
In a blog post announcing the layoffs, Ajayi said that Cityblock is “focused on transforming the healthcare experience and outcomes for populations that the system has historically left behind.” He added that “this raises the bar to build a sustainable business model.”
The layoffs at Cityblock come at a time when the healthcare industry is facing a number of challenges, including rising costs, declining reimbursement rates, and an aging population. As a result, many healthcare companies are looking for ways to reduce costs and improve efficiency.
The layoffs at Cityblock are a sign that the company is facing some of these same challenges. However, Ajayi said that he is confident that Cityblock will be able to overcome these challenges and continue to grow its business.
“We are committed to our mission of transforming healthcare for all,” he said. “We believe that these changes will position us for long-term success.”
