Healtech startup Innovaccer lays off 15% employees amid structural rejig

Innovaccer, a healthtech startup, on Tuesday announced that it has laid off 245 employees which is about 15 per cent of its workforce as part of a corporate realignment process, reported Livemint.

Innovaccer was founded in 2014 by Abhinav Shashank, Kanav Hasija and Sandeep Gupta. The company provides a software-as-a-solution (SaaS) platform that helps its clients connect healthcare data across multiple systems and settings.

The company’s co-founder and chief executive Abhinav Shashank said, "We are taking the much-needed step of doubling down on our core capabilities and streamlining our organizational focus. As a result, we are going to deprioritise certain areas and offerings that distract us from our core portfolio, which will result in a reduction of workforce by approximately 15 per cent."

According to the report, the spokesperson of Tiger Global-backed Innovaccer has confirmed that the company has decided to offer severence package to its laid off staff. While it could not be ascertained from which departments/verticals the employees were fired, a spokesperson confirmed that the layoffs were undertaken across the company.

An Innovaccer spokesperson said that the company's priority is to fully support its impacted employees, which includes offering them a generous package, transitional health insurance benefits, and job placement support.

In September 2022, VCCircle, an information services group, reported that Innovaccer would sack nearly 100 employees from its technology and operations team as the company was struggling with some financial troubles. 

The healthtech startup is among the many new-age tech companies that are showing doors to their employees to cut costs at a time when raising fresh capital has become more difficult than ever. The San-Francisco and Noida- based Innovaccer had last raised $150 million in its Series E funding round led by Mubadala Capital in December. The round more than doubled the company’s valuation to $3.2 billion.

Last year, nearly 19,000 startup employees had lost their jobs and the mayhem continued in 2023, when many global and IT companies are handing over pink slips to their employees. Giants like Google, Amazon, and Microsoft have laid off their staff in the last couple of weeks.