Columbus, Ohio-based tech startup Olive is laying off 450 employees, the Columbus Dispatch reported July 19.
In a note to staff, Olive CEO Sean Lane attributed the layoffs to the company's overly aggressive expansion, according to the report.
Mr. Lane said the company, which uses artificial intelligence to automate healthcare tasks, will "focus on doing one thing, doing it incredibly well, and measuring what matters," according to the report.
"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," Mr. Lane said, according to the report.
The laid-off workers were told their work will stop immediately, according to the report. They will be paid and receive benefits for 60 days and will be eligible for two weeks of severance pay for each year of service. The company was founded in 2012, according to Crunchbase.
The company employed about 1,300 people before the layoffs, according to the report.
Olive announced a hiring freeze in June. In July 2021, Olive secured $400 million in funding, raising its valuation to $4 billion, and said at the time it would use part of the money to expand its workforce.