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Cityblock Health, a New York-based digital health company focused on primary care for underserved populations, laid off 155 employees, or 12% of its staff.
Co-founder and CEO Dr. Toyin Ajayi said in a blog post Thursday that the company has made changes to “enable key processes through technology, standardize care teams and reduce layers for stronger accountability.”
A spokesperson for Cityblock said the layoff affects the entire company and not one particular department.
Cityblock, founded in 2017, reached unicorn status in December 2020 after a $160 million funding round. In September 2021, it raised an additional $400 million in a deal that valued the company at $5.7 billion. The company provides a mix of in-person and virtual care to Medicaid and dual-eligible Medicaid and Medicare members in Massachusetts, New York, North Carolina, Ohio, Indiana and Washington, D.C.
Ajayi was appointed as CEO in March 2022. Her fellow Cityblock co-founder, Iyah Romm, stepped away from the top spot at the startup in November 2021 to take a leave of absence for mental health.
Cityblock is hardly alone in reducing headcount. As the digital health funding market has shifted downward, companies have had to lay off employees, sell lagging businesses and even file for bankruptcy.
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