Innovaccer lays off 245 employees
Innovaccer, a digital health unicorn, is laying off 245 employees or 15% of its workforce, the company said on Tuesday.
This is the second job cut in less than six months for the digital health unicorn, which laid off 90 employees in September.
“We are taking the much-needed step of doubling down on our core capabilities and streamlining our organizational focus,” said Abhinav Shashank, co-founder and CEO of Innovaccer, in a prepared statement. “As a result, 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%.”
The affected workers are split between Innovaccer’s U.S. and India operations. The consumer health cloud company said the restructuring does not impact its work in the United Arab Emirates previously reported by Digital Health Business & Technology.
The company has raised $425 million with a valuation of $3.2 billion. Shashank said in an April interview that the company is working with 60 health systems across the country. His goal over the course of the next year or two is to get to 100-200 health systems, payers and life sciences customers.
“At some point there will be an [initial public offering], probably in the middle of that journey, but we haven’t given it like a lot of thought and what the timeline might look like,” Shashank said in April.
The layoffs come as the industry deals with a broader market correction. Experts say companies need a well-trodden path towards profitability.
Dozens of digital health companies have shed staff as broader market conditions cripple growth. Last week, Teladoc Health shed 300 employees or 6% of its global workforce.