Health and fitness platform HealthifyMe has become the latest startup to trim its workforce citing growth concerns. In a statement after the layoffs, the company said, “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. In view of this and changing market dynamics, it made sense for us to steer towards profitability, despite a comfortable runway.”

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The firm has laid off 142 employees or 7 percent of its 2000+ employees. The move has impacted 79 (6 percent) employees from the operations team and 63 (23 percent) from the core team.

HealthifyMe will be offering 2 months of salary as severance and will extend medical coverage until June 2023. “As a part of our severance and support to those impacted, we will offer 2 months' salary severance with 2 weeks per year served at HealthifyMe, vested stocks till March 2023, and medical insurance continuance till June 2023, along with counseling and outplacement support”, a statement read.

Indian startups have let go of over 18,000 employees since the start of 2022 as economic headwinds hurt business and growth projections get trimmed. Funding too has slowed considerably with the proverbial winter finally settling in after a historic year of highs last year. According to a IVCA-EY report, PE-VC investments of $3.3 billion in October is 75% lower than last year a sharp drop from $11.3 billion recorded in October 2021, which was a record month.

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First Published:Dec 5, 2022 2:29 PM IST