Columbus tech company Olive lays off 450 employees
The Columbus-based health technology company Olive announced Tuesday that it is cutting 450 jobs, the latest of several Columbus companies to reduce staff.
Olive, whose headquarters is at 99 E. Main St. Downtown, said the cuts are "based on the realities of today’s economy."
Workers were told their work will stop immediately. They will be paid and will receive benefits for 60 days and will be eligible for two weeks severance pay for each year of service, according to a company notice shared with The Dispatch.
"This is the most difficult decision I’ve had to make as CEO," sad Sean Lane, who founded Olive in 2012. "But I make it knowing this is the right strategy for us to deliver on Olive’s mission. I’m inspired by what we have done and will continue to do to ensure Olive’s transformative impact for many years to come."
Olive officials did not say how many workers the company now employs, or how many are based in Columbus. The company, whose technology links health care providers and insurance companies with customer information, expanded rapidly during the pandemic but allowed most of its staff to work from home.
A year ago, the company received $400 million in funding and was valued at $4 billion.
In a note to staff, Lane attributed the layoffs to the company's overly aggressive expansion.
"We’ve grown rapidly over the last several years in service of creating a new healthcare experience for humankind," he wrote.
"The realities of today’s economy are forcing us to rethink this approach. While we are experiencing many of the same headwinds as other organizations — including shifts in the industry landscape, evolving customer expectations, and challenging market conditions — we also must reconcile missteps we made.
"Our fast-paced growth and lack of focus strained our product and engineering resources and prevented us from executing quickly on key initiatives. I take responsibility for this."
He said the company will narrow its services in an effort to become more profitable.
"We will focus on doing one thing, doing it incredibly well, and measuring what matters," Lane added.
"Going forward, that one thing is the critical connection between providers and payers, starting with Autonomous Revenue Cycle for providers and Utilization Management Transformation for payers," which Lane said accounted for 80% of the company's revenue.
An Olive spokesperson did not respond to a question about whether the cutbacks would affect the company's recent plans for a Worthington office.
Olive joins several Columbus-area companies to announce layoffs this year, including Root Insurance, OhioHealth and Victoria's Secret.
jweiker@dispatch.com
@JimWeiker
This article originally appeared on The Columbus Dispatch: Layoffs at Olive the latest in several area job cuts
