Comodo Health, a healthcare company that makes data-driven maps, has laid off 9% of its employees, or 78 people, sources said. The staffing changes come about a month after the company announced it would leave the company at the end of the year due to personal matters, and a few months after the Tiger Global-backed company announced it would go public.
However, as the IPO season continues to cool, the not-yet-profitable business has opted to cut back ahead of any 2023 activity. Sources say the restructuring may be an attempt by the company to appear more profitable ahead of an expected public market debut.
TechCrunch reached out to Comodo Health for comment but had not heard back at the time of publication. However, the company confirmed the layoffs via a LinkedIn post.
Co-founders Arif Nato and Webb Sun wrote a memo to employees, obtained by TechCrunch , that describes the layoffs as a broad restructuring process as the world changes “again.”
“We believe this is the start of a transformation that will last for months, if not years,” the co-founders wrote in an email to all full-time employees. “We’ve always prided ourselves on running a capital-efficient business, and today we’re taking steps to ensure we’re a better place for the world around us.” Axios last reported Comodo’s ARR, as of March, was around $150 million. Investors, meanwhile, valued the company at $3.3 billion in its last round of funding, with a $220 million Series E announced in March 2021.
After the email was sent, Comodo Health’s co-founders also held meetings with remaining employees, sources said, adding that the company has closed a $200 million structured equity offering from Dragon and Coates. The co-founders emphasized that the dismissal will be the first and last in the company. It is not clear whether this round was added during the same review in March 2021.
Comodo Health joins a number of latecomers that have announced layoffs in the final innings of the year, including Stripe, Plaid and Airtable. It made an early strike in April 2020, months after raising a $50 million round from Andreessen Horowitz.
Current and former Comodo Health employees can reach Natasha Mascarenhas via Signal, a secure encrypted messaging app, at 925 271 0912. @nmasc_
