Innovaccer, a health data analytics startup that reached unicorn status in 2021, has laid off 245 workers, or about 15% of its workforce.
First reported by Inc42, the cuts mark the company’s second round of layoffs in several months. In September, Innovaccer confirmed it had laid off 90 employees, which made up 8% of its workforce at the time.
Innovaccer said the cuts affect workers across geographies and company verticals.
“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,” cofounder and CEO Abhinav Shashank said in a statement. “This will be our central focus as the industry shifts from a predominantly fee-for-service model to value-based, consumer-centric care. Hence, we are taking the much-needed step of doubling down on our core capabilities and streamlining our organizational focus.”
THE LARGER TREND
Innovaccer announced two large funding rounds in 2021, including 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 company was founded in 2014.
Digital health funding slowed significantly last year after a boom in 2021, particularly for later-stage investments. A number of digital health and health tech companies have pursued layoffs since the summer, often citing the larger economy as a contributing factor.
In January, diagnostics company Cue Health said it would lay off about 26% of its staff; hybrid provider Carbon Health announced more layoffs; Alphabet’s Verily said it would cut staff amid a larger restructuring; prescription digital therapeutics company Akili Interactive reported it would cut 30% of its workforce; and virtual care giant Teladoc Health laid off 300 employees.