Healthtech firm Practo cuts 41 jobs in engineering department
Practo terminated approximately 41 employees in its latest wave of layoffs. With a current workforce of over 500, the majority of the impacted individuals were from the engineering team. The company has denied that the layoffs were due to cost-cutting measures, but due to ongoing performance management and planning process, amid the challenging funding environment.
According to a statement by Practo, upholding a high standard of performance and productivity is vital for the company's sustained expansion. Additionally, a spokesperson stated that the layoffs were executed in accordance with the employment agreements.
"Therefore, as part of our continuous performance management and planning process, we had to part ways with 41 employees in accordance with their employment contracts," said the Practo spokesperson.
Practo made it clear that the layoffs were not connected to the financial performance of the business. The company claims that it is currently experiencing record high revenue, margins, and profits.
In addition, the company recently recruited over 500 skilled employees in the last year and is looking to hire an additional 500 staff, including backfills, in the coming year. "Our revenue, margins, and profits are at an all-time high," a spokesperson from the company affirmed.
In August 2020, Hong Kong-based AIA Group led a funding round of $32 million for Practo, the healthtech company that has raised over $228 million. The platform operates in over 20 countries and links over 300 million patients with more than 100,000 verified doctor partners.
The layoff by Practo is another sign of the ongoing funding challenges that are affecting the startup ecosystem. Investors have become more wary of investing in startups that lack profitability or a clear strategy to achieve it. Consequently, companies are facing pressure to sustain their financial performance and strengthen their finances.
Currently, Practo has over 300 million users who utilise its services to connect with verified doctors and healthcare providers online. The platform provides several features such as online consultations, appointment scheduling, prescription management, and maintenance of health records.