SINGAPORE:

In a significant restructuring move, healthcare provider Doctor Anywhere (DA) has let go of approximately 45 employees, translating to an 8.1% reduction of its workforce across Southeast Asia. This decision, announced on December 13, is part of a strategy aimed at overcoming current economic headwinds and securing the company's long-term viability.

According to DA, the layoffs were concentrated primarily outside of Singapore, with less than 20% of the eliminated positions based in the city-state. The company emphasized that this tough decision was made to ensure it can better focus on its mission: delivering impactful healthcare solutions and developing a more affordable and accessible "Hospital Anywhere" model across Asia.

The affected roles were labeled “duplicative” as part of DA's streamlining efforts, which included reorganizing its technology team into smaller, more agile units. Importantly, the company stated that no medical doctors or healthcare professionals were among those laid off.

In a bid to support the impacted employees, Doctor Anywhere has implemented several measures, including offering "enhanced severance benefits" that exceed legal requirements. These benefits encompass severance pay based on tenure, notice period compensation, leave encashment, and extended healthcare coverage, where applicable. Additionally, the company indicated it would assist with immigration matters for affected workers, if necessary.

The restructuring comes as a surprise, given the company's ambitious plans announced in 2022 to double its workforce, building on its headcount of over 450 and intending to create 200 new positions at its Singapore headquarters. Since its inception in 2017 as a telehealth start-up in Singapore, Doctor Anywhere has expanded rapidly, establishing a presence in six Southeast Asian countries, including Malaysia, Vietnam, Thailand, and Indonesia.

Currently, Doctor Anywhere reports serving over 2.8 million users via its telemedicine services and operates seven clinics in Singapore, alongside an integrated medical center strategically located on Orchard Road. However, like many companies in the healthcare sector, DA faced financial challenges, reporting an operating loss of S$31.1 million (approximately US$23.6 million) for fiscal year 2023, although this indicated a 17% year-on-year improvement.

As the company navigates these turbulent waters, further inquiries have been directed to the National Trades Union Congress (NTUC) and the Ministry of Manpower (MOM) regarding the ongoing layoffs and employee support policies.

Is Doctor Anywhere setting the stage for a robust comeback?

Only time will tell as they adapt to the evolving economic landscape!