Fierce Healthcare February 14, 2024
Amwell, formerly American Well, cut 10% of its workforce at the end of 2023 to slash expenses as its losses ballooned to $679 million.
The company’s losses in 2023 included significant goodwill impairment charges totaling $436 million caused by a sustained decline in its share price during the first three quarters.
The headcount reduction will produce more than $15 million in compensation-related savings, Amwell chief financial officer Bob Shepardson said during the company’s fourth-quarter and full-year 2023 earnings call Wednesday.
But the virtual care giant is plotting accelerated growth and a path to profitability in 2025, boosted by a major contract with the Defense Health Agency. Amwell executives said the DHA contract will have a significant impact on Amwell’s future...
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