Homegrown healthtech and fitness startup HealthifyMe has laid off around 20 per cent of its employees to focus on profitability amid the growing concerns of a recession. Chiratae-backed startup’s this decision has impacted the employees in subject matter expert, quality analytics, product and marketing roles.
The startup had let go of 150 employees, reported Inc42 citing sources. The company also claimed that would be offering a two-month severance package and will further extend medical coverage to the impacted employees.
With these layoffs, HealthifyMe has joined the list of tech companies that have resorted to layoffs amid macroeconomic headwinds. Technology startups in India have sacked around 18,000 employees since the start of 2022.
HealthifyMe, in a statement, said, “We have had to take the tough decision to let go 150 of our team members. Like much of tech, growth hasn’t kept pace with expectations and hiring. We are also undergoing an evolution with our new vision around metabolic health (HealthifyMe 2.0), which requires different resources.”
The company also stated that it would provide the vested stocks till March 2023 and has offered counselling and outplacement support to those affected.
“In view of this and changing market dynamics, it made sense for us to steer towards profitability, despite a comfortable runway. As a part of our severance and support to those impacted, we will offer two months’ salary severance with two weeks per year served at HealthifyMe, vested stocks till March 2023, and medical insurance continuance till June 2023, along with counselling and outplacement support,” it added.
HealthifyMe, which was founded by Tushar Vashisht and Mathew Cherian in 2012, delivers measurable results on eating habits, fitness, and weight by tracking lifestyle, providing access to diet and workout coaches and through its artificial intelligent nutritionist platform.
The Bengaluru-based startup’s this move comes almost 1.5 years after it raised $75 million in a Series C round of funding, led by LeapFrog and Khosla Ventures. HealthifyMe has raised $100 million across multiple rounds so far.
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