Healthtech unicorn Innovaccer lays off 120 workers amid tough market conditions

Healthtech unicorn Innovaccer has sacked 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.

The company, which last raised a $150 million Series E round at a $3.2 billion valuation, is offering a three-month salary as severance package to those affected.

In a statement, Innovaccer 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.

“These cuts, which totalled less than 8 per cent of our workforce, will help us improve business efficiency and take the right steps toward profitability as we continue our rapid growth,” the company added.

Inc42 was first to report about the development.

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

The round was led by Mubadala Capital, with participation from existing investors B Capital Group, Microsoft’s M12 fund, OMERS Growth Equity, Dragoneer, Steadview Capital, Tiger Global Management, and other new investors.

The round brought the total capital raised by the company to over $375 million.

“We’ve reached a turning point in healthcare, where the world of fragmented, fee-for-service ‘sick care’ is giving way to a new world of integrated, value-based, preventive care,” Abhinav Shashank, cofounder and CEO of Innovaccer, had said.

Innovaccer said it plans to use its new funding to invest in R&D and recruit new hires as it rapidly scales its customer experience, product, and engineering talent.

Innovaccer is a leading San Francisco-based healthcare technology company, leveraging artificial intelligence and analytics to automate routine workflows and reduce manual overhead to facilitate more person-centered care.

Founded in 2014, it has built the Innovaccer Health Cloud, a complete software platform used by leading healthcare organisations.

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