Healthcare staffing startup Nomad Health just slashed its workforce for the third time in a year, Business Insider has learned.
The startup, which matches nurses and other clinicians to open jobs in healthcare, cut staff on Wednesday, according to two former employees and more than a dozen LinkedIn posts. The former employees asked not to be identified to avoid retribution from the company.
Nomad Health’s chief marketing officer Maquel Shaw confirmed the layoffs in an email to Business Insider. She didn’t say how many employees were impacted and declined to comment on the reasoning for the cuts.
The most recent round of layoffs cap a stormy year for Nomad, as the startup grappled with hospital budget pressures by making multiple cuts to its staff. The startup previously cut 25% of its nonclinical workforce in October, Business Insider first reported. Nomad had already cut 17% of its staff earlier that year, in February, per Forbes.
At the time of the October layoffs, Shaw said the cuts were a “necessary but painful response” to the changing needs of Nomad’s hospital customers.
“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,” she said in an October statement to Business Insider.
A number of medical staffing startups made cuts last year in response to the market downturn. Staffing platform CareRev cut 33% of its corporate workforce in June. The following month, nurse staffing startup ConnectRN slashed 20% of its staff, and IntelyCare laid off at least 30 employees.
It’s a grim new reality for the sector, which once attracted hundreds of millions of dollars from venture capitalists to solve healthcare’s staffing crisis. But that funding window all but closed at the end of 2022. Like most of its medical staffing peers, Nomad Health last raised capital that year, banking $105 million in June 2022.
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