nOmad Health, a healthcare staffing startup, laid off about 20% of its corporate workforce this week, according to four terminated employees, as the pandemic-ignited surge in travel nurses and other temporary healthcare workers cools.
Nomad Health cofounder and CEO Alexi Nazam did not immediately respond to a request for comment. The employees were given anonymity for fear of retribution.
“Nomad, like many other companies around the world, is facing a major shift in the post-pandemic economy with inflation, slowing demand and the prospect of a recession. The reset from higher levels is happening, and it is now declining at a faster pace than anticipated,” Nazeem reviewed by email to employees. forbes, “Nomad’s leaders, starting with me, were very optimistic about the trajectory of our market. This means, unfortunately, we built our team for an economic reality that no longer exists.
The plan was to notify employees on Wednesday, but a “technical error” caused some people to receive an email notification on Monday evening, according to Najam’s email. That means many of the affected employees woke up on Tuesday morning to an overnight email with the news.
New York-based Nomad Health, founded in 2015, has raised more than $200 million in equity and debt financing to date, including a $105 million round led by Adams Street Partners and Icon Ventures in July 2022. Kevin Ryan, founder and CEO of venture fund and incubator EleCorp, is also a Nomad Fitness co-founder. Funding was supposed to push beyond itinerant nurses to help health systems staff a much broader group of temporary health care workers, including lab techs, ultrasound techs and physical therapists.
According to the email, employees will receive 6 weeks of base pay and one month of paid COBRA health insurance coverage.
“We have worked hard to avoid this outcome. We have cut non-personnel related expenses,” Nazem wrote. “Everyone on the Nomad management team has also taken pay cuts. But ultimately, the change in our surrounding environment was too great to address without reducing the size of our workforce.
This is a developing story and will be updated.