Digital well being unicorn Innovaccer lays off 245 staff

Innovaccer, a well being knowledge analytics startup that reached unicorn standing in 2021, has laid off 245 employees, or about 15% of its workforce.

First reported by Inc42, the cuts mark the corporate’s second spherical of layoffs in a number of months. In September, Innovaccer confirmed it had laid off 90 employees, which made up 8% of its workforce on the time.

Innovaccer mentioned the cuts have an effect on employees throughout geographies and firm verticals.

“Innovaccer has at all times believed in empowering its prospects to speed up their transformations, resulting in greater high quality take care of sufferers and populations, improved affected person experiences, and higher monetary and operational efficiency,” cofounder and CEO Abhinav Shashank mentioned in an announcement. “This might be our central focus because the business shifts from a predominantly fee-for-service mannequin to value-based, consumer-centric care. Therefore, we’re taking the much-needed step of doubling down on our core capabilities and streamlining our organizational focus.” 

THE LARGER TREND

Innovaccer introduced two massive funding rounds in 2021, together with a $105 million Series D that propelled it to a $1.3 billion valuation and a $150 million Series E that bumped it to $3.2 billion. The corporate was based in 2014.

Digital well being funding slowed significantly final 12 months after a growth in 2021, notably for later-stage investments. Plenty of digital well being and well being tech corporations have pursued layoffs for the reason that summer season, typically citing the bigger economic system as a contributing issue. 

In January, diagnostics firm Cue Health mentioned it will lay off about 26% of its workers; hybrid supplier Carbon Health introduced extra layoffs; Alphabet’s Verily mentioned it will minimize workers amid a bigger restructuring; prescription digital therapeutics firm Akili Interactive reported it will minimize 30% of its workforce; and digital care large Teladoc Well being laid off 300 employees.

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