Beam Dental, Branch Insurance latest Columbus startups to cut jobs
Two Columbus insurance startups have joined other young tech companies in the region that have been cutting jobs.
Beam Dental, a tech startup best known for insuring people's teeth, and insurance company Branch have both eliminated jobs this month.
Beam cut dozens of jobs, according to a former worker who has stayed in touch with employees at the company. With the layoffs, the company now has fewer than 300 workers, she said while requesting not to be identified. Other media have reported the company has cut workers as well.
The company has not issued any statements about the reductions, and the company's CEO, Alex Frommeyer did not return a phone call seeking comment.
Separately, Branch has said it has cut jobs as well, but it won't say how many.
It is the second cut in seven months for Branch, which sells auto, home and umbrella policies. The company eliminated 55 jobs last June.
"Persistent inflation has posed a significant challenge for home and auto insurance companies such as ours and as stewards of our members’ capital, we need to meet the moment with a sound and responsible plan for our members, employees, and investors," the company said in a statement. "That’s why we made the incredibly difficult decision to reduce the size of our team."
Beam dates to 2012, when three engineers started the company. It is best known for its dental insurance and its internet-connected toothbrush.
The company has since expanded to offer other product lines including vision insurance, life insurance and disability insurance.
Branch said its decision was made to ensure the company's financial strength and the workers were given severance, career placement services and other benefits.
"Branch is a company that makes big bets; we believe that we can help restore insurance to its original intent of being a force for communal good," the company said. "While this has been a moment of loss and reflection, we’re equally focused on the opportunity ahead–a future where insurance is easier to get, better, and more affordable for all."
Layoffs follow other Columbus area cuts
The reductions at Beam and Branch are the latest struggles among the tech startups in Columbus over the past year as interest rates and inflation have risen, and the companies look to control costs.
Health technology company Cover My Meds said last March that it was laying off 815 workers and leasing space in its Franklinton headquarters. It also closed an office in Arizona.
Olive, a once fast-growing health technology startup, sold two of its key businesses and shut down the rest of the company last fall. The company once had a value pegged at $4 billion and employed 1,300 workers.
Auto insurer Root, which once had a valuation pegged by some reports to be as much as $6 billion, has cut hundreds of jobs as well in recent years.
Lower.com and Upstart also have cut jobs.
mawilliams@dispatch.com
@BizMarkWilliams
This article originally appeared on The Columbus Dispatch: Beam Dental, Branch Insurance cutting jobs
