HealthifyMe

Bengaluru-based healthtech startup Healthify (formerly HealthifyMe) laid off approximately 150 employees this week, representing about 27% of its workforce, as part of a restructuring effort. The layoffs primarily affected sales and product teams. CEO Tushar Vashist stated the move aims to achieve EBITDA profitability for its India business within the next few months and to reallocate resources for expanding its offerings in the U.S. market. The company, which raised $30 million in a pre-Series D round last year, is providing affected employees with severance packages, extended insurance, and job placement assistance. This marks the second round of layoffs at the startup, following a similar reduction in December 2021.

HealthifyMe, a Bengaluru-based healthtech and fitness startup, has laid off 150 employees, representing 15-20% of its total workforce, as part of a restructuring effort amid economic uncertainties. The layoffs, confirmed in early 2023, primarily affected roles in SME, quality analytics, product, and marketing. The company cited slower-than-expected growth, shifting market dynamics, and a strategic pivot toward its new "HealthifyMe 2.0" vision focused on metabolic health as key reasons for the move, aiming to steer toward profitability despite having a comfortable cash runway. Affected employees will receive a severance package including two months' salary, vested stocks, extended medical coverage, and outplacement support. This follows a period of significant funding, including a $75 million Series C round in 2021, but also an eightfold increase in net loss to INR 157 crore in FY22.