Perspectives on Hinge Health’s Workforce Changes

According to exclusive information received by TechCrunch, Hinge Health, a firm leading the way in digital treatments for chronic musculoskeletal (MSK) diseases, recently faced a workforce reduction, laying off almost 10% of its team.

Posts from affected individuals on LinkedIn suggest that the affected employees were in a variety of roles inside the organization, including engineering. Estimates based on LinkedIn data indicate that Hinge Health employed over 1,700 people prior to this change.

A corporate representative stressed the company’s dedication to transforming musculoskeletal care while aiming for long-term sustainability in a statement about the reorganization. In order to expedite the path to profitability, maximize resource allocation, and streamline decision-making processes, the choice to streamline operations was presented as a strategic step. The spokesman promised help during the transition and conveyed gratitude for the contributions made by the leaving team members.

Hinge Health’s strategic goals, which include being profitable and being ready for a possible IPO, align with these layoffs. The company stated that there is no immediate rush to go public this year, citing a robust cash reserve of $400 million, even if it declined to provide an IPO date.

After raising $400 million in a Series E fundraising round headed by Tiger Global and Coatue Management, Hinge Health was valued at $6.2 billion in October 2021. Based on statistics from PitchBook, the company has raised $828 million in investment.

One of its rivals is Sword Health, which was valued at $2 billion in November 2021 and is supported by General Catalyst and Khosla Ventures. This illustrates the competitive environment in the digital MSK solutions industry.