Sana laid off 74 employees last Wednesday, about half of its staff, according to a post on its website.
“This is one of the hardest things we’ve ever had to do at Sana,” Will Young, co-founder and CEO of Sana, wrote in a blog post on the company’s website. “We have had to say a lot of goodbyes, and I mostly feel awful at this moment. The impacted employees are talented, mission-driven people, many of whom are not only colleagues but also friends.”
It’s the second round of layoffs for Sana this year. In February, the healthcare insurance startup laid off about 19 percent of its staff or 40 employees.
Sana, founded in 2017, provides healthcare options for small businesses. The company has raised $107 million since its inception, including a $60 million Series B funding in June 2022.
“Since Sana’s founding in 2017, we have been venture-funded,” Young wrote in the blog post. “That meant we spent a lot of money on growth and a lot of money on R&D. It was okay we weren’t profitable because we could keep raising venture dollars to fund the business. We prioritized investing in the future over profitability today. I’m grateful for that time, because it allowed us to build the special company and product we have today.”
But Young said “the world has changed.” And the climate for raising money is more difficult today, he said.
“Particularly for companies in the healthcare and insurance worlds (we check both boxes),” Young wrote. “The hard fact is this new environment rewards profitability today over future investments. We have to reposition ourselves accordingly.”
Young said the company is focused on profitability, and the latest layoffs will help it get there.
“We will continue to invest in growth and R&D, but only to the extent our profits support that investment,” according to Young.