A Tech Company Now Lays Off Its Workforce in California

April 3, 2024

A tech company now lays off its workforce in California with half of roles being eliminated in the art and illustration department.

Osso VR will lay off a total of 67 people at its corporate headquarters in San Francisco, the company said in a regulatory filing Thursday.

The company developed a virtual reality surgical platform for training and assessment and had raised more than $100 million to date.

Osso had 180 employees in March 2023.

Osso plans to complete the layoffs by May 27.

The cuts affect a wide range of positions, with art and illustration roles particularly badly affected.

Osso VR CEO Greg Born wrote in an emailed statement the changes were intended to “enhance our operational efficiency and better align our resources with the market’s demands.”

He added that the company is optimizing its product offerings and reinforcing its dedication to its partners and their goals.

“We are confident that these adjustments will not only strengthen our position as a key player in the healthcare industry but also amplify the value we deliver to our customers,” Born said.

Osso disclosed the layoffs and the roles affected to meet its obligations under the Worker Adjustment and Retraining Notification Act.

The notice lists the number of people with various job titles who will be laid off, revealing that 30 people leaving the company have titles related to art and illustration.

In 2022, Osso raised a $66 million Series C financing round.

The company planned to use the money to accelerate its work to expand access to surgical education for and hire “top-tier talent to bring high-fidelity surgical training experiences to additional specialty areas.”

The March 2022 round came as digital health funding was entering a slump from which it is yet to recover, reports MedTech Dive.

As access to money has tightened, private and public companies alike have tried to reduce spending and switched their focus from growth to profitability.

A sign that Osso may be rethinking its strategy emerged in February, when the company named Born as its CEO.

Justin Barad, who co-founded Osso, became chief strategy officer.

Osso highlighted Born’s “additional expertise in operational and strategic growth.”

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Also Read: Retirees Will Now Receive More Money For Social Security

Other Economy News Today

A massive mall retailer is now discussing bankruptcy with its lenders after its debt ballooned to a whopping $274 million.

Popular mall retailer Express has been talking to lenders about raising the cash it would need for a Chapter 11 bankruptcy, according to a report from Bloomberg.

The company could file for bankruptcy as soon as next week, but no final decision has been made, reports TheStreet.

At the close of its third quarter, the retailer had cash and cash equivalents of $34.6 million and $274 million in debt.

That was a $40 million increase in debt over a year.

Despite the company’s cash position and debt, Rapid Ratings, which tracks the financial health of public companies, sees Express as being in a relatively good position.

“Express Inc. demonstrates adequate performance in leverage and earnings performance but some weakness in liquidity.

Although mixed, this performance is sufficient for the company to be assigned a Low-Risk rating,” the website reported.

However, the rating service did issue a warning.

“This period includes an abnormal item.

When the rating for this period is simulated with the abnormal item excluded, the company’s health is significantly worse suggesting the line item is having a meaningful effect on the rating for this period,” according to the service.

Express leadership issued the expected comments on its future in the news release on being delisted by the NYSE.

“Over the past several months, we have taken decisive steps to position Express for the long term, including implementing a series of cost-saving initiatives and streamlining our process to enhance operational efficiency,” Chief Executive Stewart Glendinning said.

“We remain focused on continuing to serve our customers and positioning our organization for the future.”

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Also Read: Famous Retailer Is Now Laying Off 614 People in California

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