Significant Staff Reductions at Women’s Health Startup
Women’s health startup Tia has cut approximately 23% of its workforce, according to reports from Business Insider. The company, which operates a hybrid model of in-person clinics and virtual care services specifically for women, implemented the layoffs across multiple departments this week.
Sources indicate that the reduction affected 27% of corporate staff (17 people), 22% of healthcare providers (27 people), and 23% of field support team members (28 people). The cuts were announced in an email to employees sent by Tia CEO Felicity Yost on Monday evening, according to the report.
Hybrid Healthcare Model Faces Profitability Challenges
The layoffs demonstrate how even well-funded healthcare startups are struggling to balance venture capital growth expectations with the economic realities of healthcare delivery. Analysts suggest that Tia’s situation reflects broader challenges in the sector, where in-person clinics have proven difficult to sustain financially despite significant investment.
“We must manage towards a faster timeline to be corporate-level profitable than we previously contemplated,” Yost stated in her email to employees, according to the Business Insider report. She explained that feedback received during a recent fundraise “required us to rethink our business in the current economic and policy climate, which is one that prizes cost and profit-consciousness.”
Industry-Wide Pressures on Healthcare Delivery
Tia’s struggles are not isolated within the healthcare startup ecosystem. The report states that similar companies have faced parallel challenges, with former Silicon Valley darling Forward shutting down abruptly in November 2024 after raising over $650 million. Even Amazon-owned One Medical has encountered profitability issues, according to industry analysts.
Recent industry developments show that primary care chains across the board are facing structural challenges. VillageMD began selling clinics after spinning off from Walgreens, while Walmart shuttered all 51 of its health centers in April 2024, citing profitability concerns. These market trends highlight the difficult environment for healthcare delivery companies.
Funding Challenges and Strategic Shifts
According to the report, Tia sought additional funding after determining that underperformance meant the company would not reach profitability with its existing cash reserves. While Yost confirmed that Tia ultimately secured additional funding, the process yielded feedback that necessitated the restructuring and layoffs.
The company last reported a major funding round in 2021 with a $100 million Series B, though it received an undisclosed Series B extension from Melinda French Gates’ Pivotal Ventures in 2023 that reportedly brought total funding to $150 million. The current situation reflects the challenging landscape for recent technology companies seeking to scale operations while managing costs.
Operational Changes and Future Plans
In addition to workforce reductions, Yost’s email outlined significant operational changes, including reductions in tools and contracts, cuts to senior leadership compensation, and a reevaluation of hiring practices. 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.
Despite these challenges, a Tia spokesperson told Business Insider that the company has seen strong membership growth that has exceeded 2025 expectations. The spokesperson also mentioned planned health system partnerships and expansion announcements for early next year, indicating that the company continues to pursue growth amid related innovations in the sector.
Tia operates 11 clinics across Los Angeles, New York City, San Francisco, and Arizona, providing services ranging from gynecology and primary care to mental healthcare. The company introduced several new initiatives in the second quarter, including a non-member care model and expanded virtual services, as it works to adapt to market conditions while maintaining its patient care standards.
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