Healthtech unicorn Innovaccer has laid off 340 employees globally as part of a restructuring exercise tied to its shift to an “AI-native” operating model. The cuts, confirmed by the company on May 15, span teams in India and the United States, and mark the company’s third major workforce reduction in four years.
The San Francisco-headquartered, Indian-founded company is valued at $3.45 billion and counts CommonSpirit Health, Kaiser Permanente and Banner Health among its customers. Co-founder and CEO Abhinav Shashank communicated the decision to employees through an internal email, stating that several workflows previously handled by large teams are now being automated through AI systems.
“As part of a global organisational change, Innovaccer is aligning its team to current business priorities. We are building an organisation that is lean, fast and focused, which prioritises speed and measurable outcomes for our customers. As a result, we are reducing the size of our team. The number of employees impacted globally is 340,” the company said in a statement.
The layoffs come just months after Innovaccer completed a ₹600 crore ESOP buyback in January 2026 and roughly a year after its $275 million Series F funding round, which included B Capital Group, Kaiser Permanente, Generation Investment Management and M12. To date, the company has raised around $675 million.
For the financial year ended March 2025, Innovaccer reported operating revenue of ₹387.71 crore and a profit of ₹36.1 crore, with positive cash flow in the final quarter of 2024 and estimated year-on-year revenue growth of around 50%. The company also reported strong inorganic growth, having acquired Story Health in September 2025 and Humbi AI in January 2025, building on earlier purchases of Cured and Pharmacy Quality Solutions in 2024.
Founded in 2014 by IIT Kharagpur alumni Abhinav Shashank, Kanav Hasija and Sandeep Gupta, Innovaccer operates a healthcare data and analytics platform that unifies clinical, claims and operational data for hospitals, insurers and provider networks. The company has been steadily building AI agents and copilots for medical coding, prior authorisations and claims management as part of its agentic cloud strategy.
The development reflects a wider pattern across Indian-origin tech and healthtech startups, where AI-driven automation is reshaping team structures and accelerating restructuring even at well-funded, profitable companies. Affected employees will reportedly be supported in line with company policy and applicable contracts.
