Economic factors and pharmaceutical digital shift impact Doximity's performance.
Doximity cuts 10% of the workforce (100 employees) due to economic challenges and lower pharmaceutical sales.
Last week, Doximity, an online networking platform catering to medical professionals, laid off employees, and its stock dipped. Doximity has taken measures to navigate economic pressures and declining pharmaceutical sales by reducing its workforce by 100 employee positions, which is about 10% of the total number of employees.
The company anticipates incurring a restructuring cost increase of $8 million to $10 million. During the company's fiscal 2024 first-quarter earnings call, executives elaborated on these decisions.
Doximity remains positive about its long-term growth prospects, with CEO Tangney expressing confidence in achieving more than $1 billion in revenue by fiscal year 2028. The company's strategic moves, including the rollout of AI tools for healthcare professionals, are aimed at capitalizing on the evolving healthcare landscape and returning to stronger growth in the coming years.
Tangney gave the following statement:
“We’re pleased to report another quarter of record engagement across our entire platform, with over 525,000 unique providers using our workflow tools in Q1. Looking ahead, we are focused on streamlining our client workflows, so we can fully capitalize on our long-term potential.”
Doximity stock fell 22.5% as of last Wednesday morning.