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Tia, a women-focused healthcare company backed by Melinda French Gates, has cut 23% of its total workforce across several divisions. Tia CEO Felicity Yost told employees in an internal message Monday evening that the company would eliminate roughly 72 positions, according to Business Insider.
The workforce reduction affected several parts of the company at different levels. According to BI, the corporate division lost 17 employees, the roster of clinical providers was reduced by 27 people, while field support operations saw 28 roles eliminated.
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The digital health sector has experienced notable setbacks among previously well-funded ventures.
Prominent tech-driven clinic operator Forward ceased operations in late 2024 after raising over $650 million to expand its network and automated technology infrastructure.
VillageMD commenced selling off clinic locations following its separation from Walgreens in August 2024, according to multiple media reports. Walmart (NYSE:WMT) closed all 51 of its health centers in April, citing an inability to generate sufficient revenue.
This pattern points out the ongoing challenge of making physical clinic operations profitable, even with substantial capital investment.
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Yost told staff that input received during recent capital-raising discussions compelled organizational reassessment, BI reported. The company received feedback signaling a need to “rethink our business in the current economic and policy climate, which is one that prizes cost and profit-consciousness,” Yost reportedly said in the memo.
Leadership determined that the organization must accelerate its path toward profitability beyond previously anticipated timelines, BI reported.
A Tia spokesperson said the company Tia “has seen strong growth, particularly in membership, which has outpaced our expectations for 2025.” Simultaneously, structural industry-wide obstacles persisted, including pressure from elevated labor expenses and reduced insurance reimbursement rates, BI reported.
