Less than a year ago, many Australian investors were urging dynamic start-ups to spend money faster to improve their growth trajectories. This has changed rapidly, as rising inflation triggers rapid interest rate hikes and investors reduce the pace of their transactions. Reducing costs and seeking profitability has become a priority.
The Eucalyptus layoffs are company-wide, but Doyle said he would postpone some of his biggest and most expensive long-term bets, such as providing mental health support and physical clinics instead. than relying solely on telehealth.
He paid tribute to the staff who will be leaving the company in the coming days after a consultation process, saying they were “extremely talented”. And he pointed out that eucalyptus still works well.
“We have historically grown a business over 100% year over year since our inception and that remains true today,” Doyle said, though he declined to provide metrics such as the cash or income.
“We definitely have at least 12 to 18 months to figure things out,” he said.
Eucalyptus last raised $60 million late last year in a round led by US venture capital firm BOND and a group of local investors.
Comparable foreign start-ups have also encountered difficulties. US company Ro, which is valued at $7 billion, cut 18% of its workforce last month. Him & Hers Health, which is listed, has lost 75% of its market capitalization since a peak last year.
A Eucalyptus employee, who spoke anonymously and faced potential redundancy, said the company’s founders had “handled the situation very well” and been transparent despite the difficult circumstances.
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