Sana Benefits lays off 73 employees

Sana Benefits, a provider of health insurance for small and midsize businesses, is laying off 73 employees, nearly half of its total headcount.

“Since Sana’s founding in 2017, we have been venture-funded. That meant we spent a lot of money on growth and a lot of money on R&D. It was ok we weren’t profitable because we could keep raising venture dollars to fund the business. We prioritized investing in the future over profitability today. I’m grateful for that time, because it allowed us to build the special company and product we have today,” co-founder and CEO Will Young shared in a blog post. “The world has changed, however, and venture funding is harder to come by now. Particularly for companies in the healthcare and insurance worlds (we check both boxes). The hard fact is this new environment rewards profitability today over future investments. We have to reposition ourselves accordingly.”

Founded in 2017, Sana serves over 1,000 businesses. The startup raised just over $100 million and its latest funding round was announced in June 2022.

In February, Sana reduced its workforce by ~19%.