Teladoc Health to cut 300 jobs to shave costs

Jan 18 (Reuters) – Teladoc Health Inc (TDOC.N) The company said on Wednesday it would cut 300 jobs, or 6 percent of its global non-clinical workforce, as it plans to prioritize its commercial businesses in a challenging demand environment.

“We will make meaningful cost reductions this year,” CEO Jason Gorevich said in a letter to employees.

Teladoc said the moves will help the company focus on its primary care division Primary360, chronic care for chronic conditions, and its growth driver online counseling platform BetterHelp.

Some of these job cuts were implemented in the fourth quarter of 2022 as part of Telehealth’s restructuring plans and previously announced cost-saving measures.

The restructuring process has led to a reduction in office space in certain markets, and Teladoc will further evaluate its real estate footprint on a cost-management drive.

Teladoc said it will record $4.4 million of total charges of $21.4 million related to these actions in the fourth quarter, but does not expect them to have a material impact on its annual results.

Shares of Teladoc rose slightly to $28.50 in premarket trading.

Reporting by Khushi Mandowara and Bhanvi Satija in Bengaluru; Editing by Nivedita Bhattacharjee and Sherry Jacob-Phillips

Our standards: The Thomson Reuters Trust Principles.

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