Innovaccer’s Shift Towards an AI-Native Organisation: Latest Layoff News
Innovaccer has initiated another round of layoffs in its transition to becoming an AI-native organisation. This information has been conveyed through an internal email from founder and CEO Abhinav Shashank, which has gained traction on social media platforms such as Reddit. In the communication, Shashank informed employees that the layoffs result from a significant organisational transformation driven by AI adoption. He noted that AI systems have taken over workflows that previously necessitated large teams.
The company later confirmed this development to Inc42, stating that 340 employees worldwide are affected. Innovaccer remarked, “In alignment with global organisational changes, Innovaccer is adjusting its team to meet current business priorities. We aim to establish a streamlined, agile organisation that prioritises speed and measurable results for our clients. Consequently, we are reducing our team size, and the global impact stands at 340 employees.”
Startup Superb has sought additional insights from Innovaccer regarding this transition. This event marks the second significant layoff wave at Innovaccer. Earlier in January 2023, the firm laid off approximately 15% of its workforce, impacting nearly 245 employees.
These layoffs follow Innovaccer’s recent ESOP buyback valued at $75 million, completed in January 2026, which provided liquidity to current and former employees with vested stock options. This buyback came after Innovaccer secured $275 million in its Series F funding round announced in January 2025, which saw contributions from investors such as B Capital, Kaiser Permanente, and Generation Investment Management. To date, Innovaccer has raised around $675 million and holds a valuation exceeding $3.4 billion.
Established in 2014, Innovaccer runs a healthcare data and analytics platform that aids hospitals, health systems, and insurers in unifying clinical and operational data. The company has developed a robust presence in the US healthcare sector, collaborating closely with provider networks and payers.
For the financial year ending March 2025, Innovaccer reported an operating revenue of Rs 387.71 crore and a profit of Rs 36.1 crore.
In February, home décor and interior design company Livspace also undertook layoffs affecting around 1,000 employees as part of its restructuring aimed at becoming an AI-native organisation.