Healthtech unicorn Innovaccer lays off 245 workers, 2nd job cut in 5 months

Healthtech unicorn Innovaccer has sacked nearly 245 employees, or about 15 per cent of its workforce, across teams in India and the US, the media reports said on Tuesday.

Innovaccer cofounder and CEO Abhinav Shashank cited an "uncertain macroeconomic environment" as the reason behind the job cuts, according to an internal mail sent to employees and accessed by leading startup news portal Inc42.

"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," Shashank was quoted as saying in the email.

The startup said it will provide severance packages to affected employees, as well as transitional health insurance benefits and job placement assistance.

This is the second layoff at the company in around 4-5 months' time amid the deepening funding winter and recession fears.

In September last year, Innovaccer laid off nearly 120 employees, or less than 8 per cent of its workforce, owing to "tough economic conditions", and most of the layoffs occurred within its tech teams.

Innovaccer had said that its business fundamentals are still strong.

However, "given the current economic conditions, we implemented a small workforce reduction to optimise our cost structure", said the company.

The startup raised $150 mn in its Series E round at a valuation of $3.2 bn in February 2022.

In December 2021, Innovaccer raised $150 million, driven by rapid customer adoption of the Innovaccer Health Cloud.

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