News Update

Pristyn Care reduces workforce by 300 and downsizes medical tourism to lower expenses

• ByStartupStory     |    March 8, 2023

Amid uncertain economic conditions, Pristyn Care, a startup specializing in surgery care, has implemented a cost-cutting initiative resulting in the layoff of around 300 employees out of its workforce of over 2,000 employees. The reduction in workforce primarily impacted junior and mid-level employees working in sales, administration, category, and city teams, representing approximately 15% of the total workforce. These developments were confirmed by four sources, including two employees who were recently terminated.

Pristyn Care, a healthtech firm supported by Sequoia Capital and Tiger Global, has cited under-performance as the reason behind the layoff of approximately 300 employees. Two former employees revealed that they were summoned by the HR manager to surrender their laptops due to the company’s failure to meet targets and the dismissal of employees with poor performance. One of the former employees said that they received this news one morning when they arrived at the office.

In an effort to reduce costs, Pristyn Care has followed in the footsteps of several other healthcare companies by eliminating positions. Last month, Kalaari-supported Phable laid off 70% of its workforce, while Medibuddy, which is supported by Stride Ventures, let go of 8% of its employees in January. However, Pristyn Care has denied the claims of layoffs and instead cited the dismissal of fewer employees due to poor performance. According to a company spokesperson, Pristyn Care has hired over 300 employees in the past four months, and therefore, there have been no layoffs.

According to a spokesperson for Pristyn Care, the company has a thorough performance evaluation system that enables them to assess efficiency levels throughout the organization. They found that around 45 employees were consistently underperforming, and they had to let them go. Despite having a strong revenue in the previous fiscal year and having high ambitions for the future, the company’s cash burn rate remains high. The largest expense was employee benefit costs.

Pristyn Care’s Founder and CEO, Harsimarbir Singh, stated in a report by Financial Express last month that the company had been careful during the hiring process and did not require any layoffs. Additionally, Singh posted on LinkedIn last week, criticizing the widespread layoffs in the industry. The healthcare firm, based in Gurugram, is also downsizing its medical tourism-focused international expansion division, according to two sources.

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