The healthtech and fitness startup HealthifyMe has laid off around 20 percent of its employees to focus on profitability amid the growing concerns of a recession. Chiratae backed startup impacted the employees in subject matter expert, quality analytics, product and marketing roles.
It was reported by Inc 42 that the startup had let go of 150 employees. The company said that it would be offering a two-month severance package and will extend medical coverage to the impacted employees.
With these layoffs, HealthifyMe has joined the list of tech companies that have resorted to layoffs because of macroeconomic headwinds. Since the start of 2022, around 18,000 employees have been sacked in India.
In a statement, HealthifyMe said we had to take the tough decision to let go 150 of our team members. Like many tech companies, growth hasn't kept pace with expectations and hiring. We are going through an evolution with our new vision around the metabolic health HealthifyMe 2.0, which requires different resources. The company said it would provide the vested stocks until March 2023 and that it would provide 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 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 until March 2023 and medical insurance continuence until June 2023, along with counselling and outplacement support, it added.
HealthifyMe, founded in 2012 by Tushar Vashisht and Mathew Cherian, delivers measurable results on eating habits, fitness and weight by tracking lifestyle, providing access to diet and workout coaches and through its artificial intelligence nutritionist platform.
The move came almost 1.5 years after it raised $75 million in a Series C round of funding led by LeapFrog and Khosla Ventures. HealthifyMe raised $100 million in multiple rounds so far.