Indian-founded unicorn joins AI layoff wave with 340 job cuts across India and US

Innovaccer, the Indian-founded healthcare technology unicorn headquartered in San Francisco, has laid off around 340 employees across India and the United States as part of a broader restructuring linked to artificial intelligence-led operations.

The development was widely discussed after screenshots of an internal email sent by co-founder and CEO Abhinav Shashank surfaced on social media platforms.

In the email, Shashank described the transition as part of the company’s move towards becoming an “AI-native” organisation.

“Today is a difficult day for us at Innovaccer, and I want to name that plainly before anything else,” Shashank wrote in the message titled “Moving Forward as an AI-Native Company”.

The authenticity of the screenshots circulating online could not be independently verified.

Third layoff round in four years

According to the Inc42 report, this marks Innovaccer’s third round of layoffs over the past four years, reflecting the wider restructuring trend across global technology firms adopting automation and AI-driven workflows.

The company has not publicly disclosed:

• The exact number of employees impacted in India and the US separately
• Which teams or functions were affected
• Whether additional restructuring measures are planned

In the internal communication, Shashank informed employees that affected staff would receive direct communication from the company’s PX team regarding the end of their roles.

“Some of our colleagues will receive a message from the PX team today, informing them that their roles are ending,” he wrote.

The CEO also acknowledged the contributions of affected employees, stating that they had helped build products, support customers and sustain the company during difficult phases.

Severance and transition support offered

The email outlined support measures for impacted employees, including severance details and transition assistance.

“To those whose roles are ending: I’m grateful for what you gave to this company. Leaving this way is hard, and I won’t minimize that,” Shashank wrote.

He added that the PX team would share details related to:

• Separation packages
• Transition support
• Next steps for exiting employees

The layoffs come as technology firms globally reassess workforce structures amid growing investment in generative AI, automation and productivity-focused tools.

AI-native operating model takes centre stage

Innovaccer’s restructuring reflects a broader shift within the technology sector, where companies are redesigning operational models around artificial intelligence capabilities.

In his message to employees, Shashank directly linked the workforce changes to the company’s future AI strategy.

The company described its next phase as an “AI-native” structure, signalling a stronger focus on automation-driven workflows and AI-integrated product development.

Across the technology industry, firms have increasingly used AI tools to streamline coding, customer operations, analytics and enterprise processes, leading to organisational restructuring and slower hiring in several sectors.

Indian founders built healthcare data platform

Founded by Abhinav Shashank, Kanav Hasija and Sandeep Gupta, Innovaccer operates in the healthcare technology sector and develops data integration, analytics and software systems for hospitals, insurers and healthcare providers.

The company focuses on unifying patient and healthcare network data to improve operational and clinical decision-making.

According to information cited by Financial Express from investment firm WestBridge Capital, the idea behind Innovaccer emerged from a data-sharing academic project associated with Harvard University and the Wharton School.

Key company details include:

• Headquarters: San Francisco, United States
• Sector: Healthcare technology and data platforms
• Funding raised: Around $675 million
• Reported valuation: Approximately $3.45 billion

Shashank, who was born in Lucknow, studied mechanical engineering at Indian Institute of Technology Kharagpur before co-founding the startup.

AI-led restructuring likely to continue across tech industry

Innovaccer’s latest layoffs add to the growing list of technology companies restructuring teams around AI adoption and operational efficiency.

As enterprises accelerate spending on artificial intelligence infrastructure and automation tools, industry analysts expect more companies to rethink workforce structures, particularly in software, analytics and support functions.

For startups operating in competitive and capital-intensive sectors such as healthcare technology, the pressure to balance growth with profitability is likely to intensify in the coming quarters.