Significant Staff Reductions at Women’s Health Startup
Women’s healthcare startup Tia has implemented substantial workforce reductions, cutting approximately 23% of its staff across multiple departments, according to reports from Business Insider. The company, which operates a hybrid model of in-person and virtual care specifically for women, reportedly eliminated 27% of its corporate team (17 people), 22% of its providers (27 people), and 23% of its field support team (28 people).
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Sources indicate that CEO Felicity Yost announced the layoffs in a Monday evening communication to employees via email. The staff reductions come as the startup faces increasing pressure to demonstrate profitability despite strong membership growth that has reportedly exceeded 2025 expectations.
Broader Healthcare Sector Challenges
Analysts suggest Tia’s workforce reduction reflects wider challenges in the healthcare delivery sector, where even well-funded companies are struggling with sustainability. According to the report, similar tech-enabled healthcare ventures have faced comparable difficulties, with former Silicon Valley darling Forward shutting down operations in November 2024 after raising over $650 million.
The report states that primary care chain VillageMD has begun selling clinics after spinning off from Walgreens, while Walmart closed all 51 of its health centers in April 2024, citing profitability concerns. These industry developments highlight the structural challenges facing care delivery organizations nationwide.
Financial Pressures and Funding Challenges
According to Yost’s email to employees, the layoffs were reportedly prompted by feedback received during a recent fundraise effort. Sources indicate Tia sought additional funding after underperformance meant the company would not reach profitability with its existing cash reserves.
“We must manage towards a faster timeline to be corporate-level profitable than we previously contemplated,” Yost stated in the email, according to the report. The funding environment reportedly requires greater cost consciousness and profit discipline, mirroring market trends across multiple sectors.
Operational Restructuring and Cost-Cutting Measures
Beyond the workforce reductions, Yost indicated that Tia would implement significant changes to operating expenses, including adjustments to tools and contracts, and reduced compensation for senior leaders. The company reportedly can no longer afford to hire clinical roles ahead of demand and must “creatively rethink” how it optimizes administrative and care support roles.
These operational changes come amid broader technology sector adjustments and industry-wide cost pressures. Despite these challenges, a Tia spokesperson stated the company maintains “a position of strength” and has planned health system partnerships and expansion announcements for early next year.
Business Model Evolution and Market Response
Tia, founded in 2016 by Carolyn Witte and Felicity Yost, initially focused on in-person clinics before expanding to virtual care services during the COVID-19 pandemic. The company later adopted a hybrid model that combines both approaches. According to the report, Tia introduced several new initiatives in the second quarter aimed at counteracting first-quarter performance dips, including a no-membership-required care model and partnerships for GLP-1 prescriptions.
While the no-membership model reportedly outperformed expectations, broader business underperformance led to the need for additional funding. The company’s challenges reflect the difficult balance between growth expectations and profitability in the healthcare sector, similar to partnership strategies seen in other industries and operational adjustments across technology companies.
Leadership Transition and Previous Workforce Changes
The current restructuring follows leadership changes at Tia, with cofounder Carolyn Witte stepping down as CEO in April 2024 and transitioning to chairwoman. Yost, formerly Tia’s president, assumed the role of interim CEO at that time. This is not the company’s first workforce reduction—Tia implemented layoffs in July 2022, which then-CEO Witte described as a preemptive response to market conditions.
According to the report, affected employees in the latest round, including patient-facing providers, were cut off from Tia’s systems immediately following the email announcement. The company currently operates 11 clinics across Los Angeles, New York City, San Francisco, and Arizona, providing services ranging from gynecology and primary care to mental healthcare.
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