Sword Health, a $3 billion digital health startup, laid off 13 physical therapists in October 2024, representing about 17% of its roughly 75 treatment-facing clinicians. The company, which provides virtual care for muscle and joint pain, stated the cuts were performance-based. This move aligns with its strategy to leverage AI to scale operations, aiming to increase each therapist's caseload significantly—from about 200-300 patients to a target of 700 by year's end—by using AI to draft patient communications. The startup, which raised $130 million in June 2024 and is eyeing a potential 2025 IPO, continues to hire, with over 30 open positions for physical therapists.
