GoodRx, a consumer drug pricing and digital health company, said it’s laying off 140 employees, or 16% of its workforce, primarily in its technology and marketing groups.
The company said in a 8K public disclosure that the move was made to focus investments into prioritized areas. It plans to focus on its core prescriptions and growing pharmaceutical manufacturer solutions businesses.
The company expects the layoffs to occur by the end of October.
GoodRx has had a rough couple of years since it went public in June 2020. Its stock price went from trading at a high of $56.63 per share in February 2021 to closing at $6.10 per share Wednesday.
In a recent earnings call, GoodRx said it resolved an issue with an unnamed national grocery chain that stopped doing business with the tech company. According to media and analyst reports, the grocery chain in question was Kroger, although GoodRx would not confirm. While the issue was resolved, GoodRx said the financial effect of the dispute would be felt throughout the year.
In March, GoodRx co-CEO Trevor Bezdek said the company also faced an unexpected longer impact from COVID on its prescription transactions business.
GoodRx’s reported revenue of $191 million in the second quarter was an increase of 9% from the year-ago period, but the company had a net loss of $1.5 million, compared with year-ago earnings of $31.1 million. Its monthly active users fell from 6 million to 5.8 million, but paid subscription plans increased 8%, to 1,131 from 1,051.
“We’re taking a hard look at all of our costs and expenses and reprioritizing how much we spend across the business,” Bezdek said on the most recent earnings call.
GoodRx is the latest digital health company to lay employees off as the industry faces a broader market correction.
