UK gut health startup Zoe, a prominent direct-to-consumer healthtech company, announced in April 2024 that it will cut costs by 20%, leading to layoffs. The company, which grew rapidly and became a household name during the pandemic, admitted it "overexpanded" its team in an unsustainable way after growth forecasts for 2024 proved inaccurate. While Zoe has over 100,000 members and continues to attract new users, high customer churn and a need to align costs with revenue prompted the restructuring. The layoffs are part of broader cost-cutting measures, including halting office expansion and reducing contract expenses. Zoe, which has raised $84.5 million and was the UK's fastest-growing healthtech by headcount in 2023, aims to stabilize its operations and focus on its science and member base.
