Confirmed: Health Startup Practice Fusion Laid Off 75 People Ahead Of Possible IPO

The layoffs primarily affect marketers, engineers, and customer service teams, according to sources.

Confirmed: Health Startup Practice Fusion Laid Off 75 People Ahead Of Possible IPO
[Photo: Flickr User Lisa Larson-Walker]

Practice Fusion, a health-technology startup with more than $150 million in financing, laid off approximately 75 people–30 of them engineers, according to a source familiar with the matter. The company was reportedly preparing for a possible IPO.


The restructuring primarily impacts employees in the engineering, product, marketing, and customer success departments. Those affected are primarily low-level and mid-level employees, rather than high-ranking executives. The layoffs were announced today at an all-hands meeting, with an internal note circulated to the team.

According to LinkedIn, between 200 and 500 people currently work at the company.

Practice Fusion confirmed the layoffs to TechCrunch. Approximately a quarter of the company’s employees were let go.

San Francisco-based Practice Fusion develops a free, web-based electronic medical record that is used by small and mid-sized physician practices. The company makes its money by selling advertising to pharmaceutical companies and software developers–basically anyone with a vested interest in displaying marketing messages to doctors– as well as through its partners that connect to the platform, such as pharmacies and labs. The company recently announced 70% year-over-year revenue growth, although it has not revealed its operating expenses.

In August, the company announced some management changes as Ryan Howard, the company’s founder, stepped down as CEO. He was replaced by interim CEO Tom Langan, while the board looked for a replacement. At the end of 2015, the company announced that Langan would remain as CEO on a permanent basis.

Practice Fusion has raised funds from a slew of Silicon Valley venture capital firms, including Kleiner Perkins and Founders Fund. PayPal cofounder and early Facebook investor Peter Thiel is an angel investor in the company.


The company did not respond to a request for comment.

About the author

Christina Farr is a San Francisco-based journalist specializing in health and technology. Before joining Fast Company, Christina worked as a reporter for VentureBeat, Reuters and KQED.