Fruchterman also leaves his position as a member of Butterfly’s board of directors. He intends to partner with the company’s leadership team through the year to ensure a smooth transition.
“On behalf of the board, I want to thank Todd for his vision, passion and dedication to Butterfly during his tenure,” said Jonathan Rothberg, Butterfly founder and chair of the board. “Todd has built a highly capable leadership team, who will function in the interim to ensure continuity while we conduct a search for a new chief executive who will continue the company’s growth.”
Butterfly tabbed Rothberg to serve as interim CEO during the transition period. His responsibilities include working with the executive team to drive the company forward and ensure business continuity as the company searches for a permanent replacement.
This past year under Fruchterman, Butterfly adopted a plan to extend its cash runway. That included “improved efficiencies and targeted reductions in our workforce.”
A Form 10-Q filed with the SEC in August said it plans to reduce its workforce by 10%. It incurred $2 million in cash charges in the process. The company had 463 employees at the end of 2021, according to its most recent annual report.
The company then failed to meet third-quarter expectations and slashed its full-year guidance. Fruchterman called the three-month period “an important one for our learning and trajectory as a young and agile company.”
Butterfly Network develops artificial intelligence-based handheld ultrasound technology.