It has been the toughest time for laid-off employees while at the same time the startup industry in India is booming. Big tech companies laid off several of their employees citing monetary issues and cost-cutting measures. Other industries are also reducing most of their redundant employees.
Recently India-based healthtech & fitness startup ‘HealthifyMe’ laid off about 20% of its employees. The company said it wanted to focus on the profit being generated amid the recession. According to a report by Inc41, the startup laid off 150 employees and is claiming to compensate them by offering a severance package with medical coverage. The company will also provide them stock options till March 2023 along with counselling if anyone needs it. Tech-based startups have laid off about 18,000 employees over the last year since.
‘HealthifyMe’ is a Bangalore-based startup founded in 2012 by Tushar Vashisht and Mathew Cherian. A platform that monitors customers eating habits, health & fitness, and weight by tracking the user’s lifestyle giving them access to coaches, and trainers via AI and nutrition advice. HealthifyMe raised $100 million in a series C round of funding by LeapFrog and Khosla Ventures in multiple rounds.
HealthifyMe made a statement saying “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.” Further adding “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.”