Health tech company Olive AI has laid off 215 employees, representing roughly 35% of its workforce, according to sources. Before this latest round of layoffs, the company had about 630 employees. Jenna Brubaker, VP of Organizational Effectiveness, confirmed the layoffs in a statement to Axios, saying the decision was based on the continued economic conditions affecting tech companies like Olive and the anticipation of continued financial strain among healthcare providers.
Olive AI, once considered a leader in health system automation, has had a challenging year. The company has been facing questions about the efficacy of its software, leading to the departure of multiple health system customers and high-level executives. Last fall, the company also made plans to divest significant portions of its products and services to sibling company Rotera.
In 2021, Olive AI collected $400 million in Series H funding in a round led by Vista Equity Partners and joined by other investors. However, a previous investigation by Axios alleged that Olive’s promises to save hospitals millions of dollars were not delivering based on documents and interviews with 16 people. In response, Olive CEO Sean Lane announced in a company-wide email that the company would shift its strategy by narrowing its offerings, leading to the layoff of 450 people last summer.
