Cloud-based EHR platform Practice Fusion has laid off about 75 employees, including people in engineering, marketing, practice sales in an effort to become fiscally responsible, Techcrunch confirms. The layoffs were announced on Wednesday during an all-hands meeting and represents about a quarter of the San Francisco-based EHR provider’s workforce.
Despite its efforts to become cash-flow positive, Practice Fusion reported 70% year-over-year growth with $26.9M in 2014 and is expected to reach $46.1M in 2015. 2016 revenue projections is expected to top $70M in 2016.
Last month, the New York Times reported Practice Fusion has hired JPMorgan Chase to explore an initial public offering (IPO) in 2017 at an estimated valuation of $1.5 billion. To date, the Practice Fusion has raised more than $150M in funding.
Layoffs are never a good sign as there have been signs of growing pains. Last November, the company appointed Tom Langan, the former chief commercial officer at Symphony Health Solutions as its permanent CEO after serving as the interim since August, replacing Ryan Howard who assumed the position of Chairman of the Board. The Board of Directors felt the leadership transition was the best step to help the company accelerate commercial growth of its EHR platform.
The company did not respond to a request for comment.