In June 2022, healthcare unicorn Ro laid off 18% of its workforce to manage expenses and align resources with its strategy, despite having raised $150 million at a $7 billion valuation months earlier. The cuts, which notably affected much of the recruiting team, were announced abruptly via Zoom, with impacted employees receiving two months of severance and healthcare benefits. This move followed executive departures and internal tensions, as the company struggled to generate significant revenue from newer products beyond its established ED line. Ro had been preparing for a potential downturn by narrowing its focus and securing additional capital solely from existing investors.
