Outcome Health lays off employees after new jobs announcement

Outcome Health laid off employees at its Chicago headquarters this week, on the heels of an announcement with Mayor Rahm Emanuel Tuesday that it plans to add 2,000 jobs over the next five years.

The health-information provider did not disclose the number of jobs cut but confirmed the layoffs in a statement. Crain’s Chicago Business, which first reported the news, put the number in the dozens, affecting both Chicago and New York offices.

The company said it had added other jobs this quarter and continued to recruit for other positions, noting that 14 new employees were starting work in the next two weeks.

The statement referred to increased emphasis on technology, automation and process improvement.

Launched in 2006 by co-founders Rishi Shah ⇒ and Shradha Agarwal ⇒ while students at Northwestern University, the company formerly called Context Media has been one of Chicago’s fastest-growing startups. It has expanded its ranks through both hiring and an acquisition and has about 600 employees.

It said Tuesday that it intends to add another 2,000 jobs in Chicago by 2022, with new positions in sales, customer service, product engineering and network operations.

The company plans to move in April into a nearly 400,000-square-foot space at 515 N. State St. It is currently in a 66,000-square-foot location at AMA Plaza, 330 N. Wabash Ave.

Outcome Health recently raised its first outside funding — more than $500 million, at a valuation of more than $5 billion, placing it in the rare status of “unicorn,” a moniker for a privately held company valued at more than $1 billion.

Investors include Goldman Sachs Investment Partners, the growth equity arm of Google’s parent Alphabet and Chicago-based Pritzker Group Venture Capital.

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