India’s leading health tech start-up, HealthifyMe announced the layoff of 142 employees. The step is taken as a matter of growing concern for the firm to manage its cost.
The firm also offered 2 months’ package to separated employees with 2 weeks per year worked at the firm.
The firm is undergoing an evolution with its new vision on metabolic health i.e. HealthifyMe 2.0 and therefore layoff was an important step.
In view of this, the company had to lay off employees so that its growth pace is maintained. Reportedly, HealthifyMe also aims to expand in India, and Southeast Asia and open its pathway in North America. The firm raised $75 million fund from LeapFrog and Khosla ventures in a series C round.
The company spokesperson said in a statement “We are also undergoing an evolution with our new vision around metabolic health which requires different resources. In view of this and changing market dynamics, it made sense for us to steer towards profitability, despite a comfortable runway.”
In the digital health and fitness space, HealthifyMe caters to more than 30 million users in over 300 cities. The app has over 2000 coaches delivering results in weight and lifestyle management.
The firm is based in India but has been expanding internationally and now nearly 25% of its revenue comes from Malaysia and Singapore. The company hired more than 1000 trainers and coaches this year and in the lieu of financial growth expected, the firm has to opt for cutting on its employee base.