Despite rapidly growing revenue and expansion of its business model, Beam Benefits on Thursday cut 8% of its workforce, joining a nationwide trend of tech layoffs amid uncertainty about the U.S. economy.
The Columbus digital employee benefits provider eliminated 31 jobs, co-founder and CEO Alex Frommeyer said in a written statement in response to questions from Columbus Inno. That works out to about 360 remaining employees.
"Letting these Beamers go was enormously difficult," Frommeyer said. "They did great work, and we appreciate them deeply. I know they are highly resilient and that they will continue to bring energy, enthusiasm, and passion with them as they continue their careers."
Beam is the latest company in the portfolio of Columbus VC firm Drive Capital to reduce staff, including much larger cuts of hundreds at Olive AI Inc. and Root Inc. Globally, more than 405,000 tech workers lost their jobs since the start of 2022, almost 45,000 this month alone, according to layoffstracker.com.
Beam had increased revenue by eightfold in recent years, according to a press release in November, when the company was named to Deloitte's list of the fastest-growing technology companies for the second consecutive year. At that time it employed nearly 400, the release said.
The 11-year-old insurer changed its name from Beam Dental last year after broadening to multiple ancillary benefits – offering vision, life, disability, and supplemental health coverage. Its founding vision was remaking dental insurance through tech-enhanced preventative care: The dental coverage is paired with a smart toothbrush, with subscription replacement brush heads and toothpaste for members.
The company, incorporated as Beam Technologies Inc., has raised a cumulative $160 million in venture capital. Half of that was in a 2021 round.
