San Francisco, Oct 25: Healthcare staffing startup Nomad Health has laid off 17 per cent of its corporate workforce, as demand for nurses and other temporary healthcare workers slows down post-pandemic.Nomad’s co-founder and CEO Alexi Nazem confirmed to Forbes that the headcount had gone from 691 to 572 employees.
“The healthcare staffing market is resetting from pandemic-fueled highs in both volume and price, and it is now decelerating at a faster rate than anticipated,” Nazem wrote to employees in an email. “This means, unfortunately, that we built our team for an economic reality that no longer exists,” the CEO said.
The affected employees will receive a minimum six weeks of base pay and one month of paid health insurance coverage as severance. Nomad is also allowing employees to keep office laptops and providing job outplacement services.
“We have tried hard to avoid this outcome. We have cut non-personnel related spending. Everyone on the Nomad management team has taken a pay cut, too. But ultimately, the changes in the environment around us were too great to address without reducing the size of our staff,” said the Nomad CEO.
Founded in 2015, the US-based Nomad Health raised more than $200 million in equity and debt financing to date. Nazem said that Nomad Health grew “much faster than the whole market did”.