- Impacted employees to get two-month’s salary as severance pay, extended insurance coverage, accelerated stock vesting period in some cases, and leave cash encashment.
Bengaluru-based healthtech startup Healthify has slashed around 150 employees, or about 27 per cent of its workforce, in a restructuring exercise earlier this week, Inc42 reported.
The layoffs mostly impacted employees from sales and product teams.
Founded in 2012, Healthify’s health and fitness app uses artificial intelligence (AI) to track diet, fitness and weight, and to offer coaching services.
Healthify cofounder and CEO Tushar Vashist, confirming the layoffs, said the restructuring exercise was undertaken as the startup is looking to make its India business EBITDA profitable and expand its offerings in the US market.
Global expansion
“In the next three-four months, our India business will turn EBITDA profitable and this restructuring was an unfortunate but an important step in line with achieving this. We also have to make sure we have enough resource allocation for the global expansion,” Vashisht said.
“We deeply understand the impact of these changes on our affected employees and will provide them robust support during this transition, including comprehensive severance packages, extended insurance coverage, and job placement assistance,” Healthify said.
The impacted employees have been offered two-month’s salary as severance pay, extended insurance coverage, accelerated stock vesting period in some cases, and leave cash encashment, it said.
In 2021, the startup cut around 150 jobs across teams including SME (subject matter expert), quality analytics, product and marketing.