Scoop: Olive delays compensation letters, adding to employee woes
Health tech company Olive AI is delaying the release of compensation letters to employees, according to a memo obtained by Axios. The letters were to be distributed by the end of this week, and instead are expected to go out sometime in "early July," the memo says.
Why it matters: The delay comes amid an exodus of Olive employees, with Axios reporting that more than 40 staffers have left since April. Several of those quitting were in senior positions.
Of note: Axios previously reported that Olive, a fast-growing startup that once commanded a $4 billion valuation, froze hiring last month — its second hiring pause this year. Sources who spoke to Axios said the freeze was due to budget concerns.
Details: The delayed compensation letters could also exacerbate the employee retention issues, two sources tell Axios.
- The letters were meant to include pay increases for some, based on the company moving to a national compensation method, the sources say.
Background: Olive CEO Sean Lane founded the company with the vision of using AI to scrub health care of repetitive and manual tasks. Since then, it's raised nearly $1 billion in funding and acquired two high-profile health tech companies.
- Axios reported in April that the company was not delivering what it was promising its customers and that most of its customers only received a fraction of the savings they were guaranteed.
What they're saying: In response to Axios' request for comment on this story, an Olive spokesperson said the company is "paying close attention to the seismic changes happening within the global market and taking proactive steps to ensure we are able to deliver on our mission."