Healthtech Unicorn Innovaccer Lays Off 245 Employees
- ByStartupStory | January 24, 2023
Today after four months of conducting layoffs, healthtech unicorn Innovaccer announced a second round of layoffs, impacting 15% of its total workforce, or 245 employees. The layoffs affected departments across the organization. In an internal email, Cofounder and CEO Abhinav Shashank cited the “uncertain macroeconomic environment” as the reason for the workforce reduction.
Shashank commented on the developments stating “Innovaccer has always believed in empowering its customers to accelerate their transformations, leading to higher quality care for patients and populations, improved patient experiences, and better financial and operational performance. This will be our central focus as the industry shifts from a predominantly fee-for-service model to value-based, consumer-centric care. Hence, we are taking the much-needed step of doubling down on our core capabilities and streamlining our organizational focus.”
According to the spokesperson, Innovaccer continues to remain in a strong financial position. The startup will also offer severance packages to the impacted employees along with transitional health insurance benefits, and job placement support.
He also commented on the restructuring exercise “We are going to deprioritize certain areas and offerings that distract us from our core portfolio, which will result in a reduction of workforce by approximately 15%. It was a very difficult decision for us. Our employees are the core of our business. We are thankful for each and every person who has helped us advance our mission to connect and curate the world’s healthcare information.”
Previously, Innovaccer did around 8% of the total workforce or 90 employees in September last year.The development comes almost a year after the startup raised $150 Mn in its Series E round at $3.2 Bn valuation. The startup’s Series E round was led by Mubadala Group along with B Capital Group, Microsoft’s M12 fund, OMERS Growth Equity, Dragoneer, Steadview Capital.
About Innovaccer:
Founded in 2014 by Shashank and Kanav Hasija and IIM- Ahmedabad alum Sandeep Gupta, Innovaccer analyzes healthcare data to provide actionable insights to healthcare providers, hospitals, insurance companies and other organizations and businesses. The startup entered the coveted unicorn club in early 2021 after raising $105 Mn in a Series D round, led by Tiger Global Management. The healthtech startup was then valued at $1.3 Bn after the investment round.
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