Nomad Health Laid Off Workers As Health-Staffing Startup Struggles
The startup slashed about 25% of its staff, according to two former employees affected by the cuts, as well as at least eight LinkedIn posts by current and former workers. The former employees asked not to be identified to avoid retribution from the company.
Nomad Health, which connects nurses and other health professionals to open jobs, confirmed in an email to Insider that it announced a round of layoffs affecting its nonclinical workforce on October 3. The company wouldn't say how many employees were cut.
Several healthcare staffing companies have been forced to cut staff this year, as higher costs for drugs and medical supplies pressure hospital expenses, leaving them with less cash to fill staffing gaps. Staffing platform CareRev cut 33% of its corporate workforce in June, while nurse staffing startup ConnectRN laid off 20% of its workforce and IntelyCare cut about 30 employees in July.
"While demand for contract nurses and allied health professionals remains high, healthcare organizations are grappling with budget shortfalls, which directly impact their immediate staffing demands," Maquel Shaw, chief marketing officer at Nomad Health, said in a statement to Insider.
She added that the cuts were a "necessary but painful response" to those changing demands.
Nomad Health cited similar factors when it slashed 17% of its workforce, or 119 employees, in February. CEO Alexi Nazem told Forbes at the time that the startup had seen demand in the healthcare staffing market tumble more than expected, and said he'd been "too optimistic."
"We built our team for an economic reality that no longer exists," he said.
Startups touting platforms for travel nurses and per diem physicians have raked in hundreds of millions of dollars from investors. Staffing startups Clipboard Health and IntelyCare both hit unicorn status with valuations of more than $1 billion last year even as funding slipped across healthcare.
Nomad Health also banked extra cash last year, raising $105 million in June 2022 at an undisclosed valuation.
Do you work at Nomad Health? Want to tell us about your experience? Contact Rebecca Torrence at rtorrence@insider.com.
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