Hinge Health, a virtual physical therapist, lays off 10% of its workforce

Hinge Health, a nine-year-old company that offers a digital solution to treat chronic musculoskeletal (MSK) conditions, cut approximately 10% of its workforce on Thursday, TechCrunch has exclusively learned.

The company said people who were laid off worked across various functions; according to employees posting on LinkedIn, some were engineers. Before the layoffs, Hinge had more than 1,700 employees, according to a LinkedIn estimate.

“As we continue to reimagine musculoskeletal care, we are also committed to building a long-term sustainable business,” a company spokesperson said in a statement. “To accelerate our path to profitability, speed up decision making, and better focus our investments, we have made the decision to realign our organization. We are incredibly grateful for all our departing team members’ contributions and are focused on supporting them through this transition.”

The layoffs come as the company prepares for an IPO and aims to reach profitability.

The company didn’t comment on the timing for its IPO, but Hinge has said previously that it is not under pressure to hit the public markets this year since it still has $400 million of cash on its balance sheet.

Hinge was last valued at $6.2 billion in October 2021 when it raised a $400 Series E from Tiger Global and Coatue Management. The company has raised a total of $828 million, according to PitchBook data.

The company’s main competitor is General Catalyst and Khosla Ventures-backed Sword Health, which was last valued at $2 billion in November 2021.