Healthtech unicorn Innovaccer laid off 340 employees on May 15, 2026, in its third restructuring round in four years. The cuts affected staff across teams in both India and the United States.
The company confirmed the layoffs in a statement: “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 are 340.”
In an internal email, cofounder and CEO Abhinav Shashank said the company is transitioning into an AI-native company. Sources told Inc42 that this shift toward becoming an AI company was the primary reason behind the layoffs.
Founded in 2014 by Shashank, Kanav Hasija, and Sandeep Gupta, Innovaccer is headquartered in California. The company helps healthcare organisations manage and integrate data from electronic health records, claims, financial, and operational systems. Its key customers include CommonSpirit Health, Kaiser Permanente, and Banner Health.
The layoffs come roughly five months after Innovaccer announced a ₹600 crore ESOP buyback for employees, and follow a period of significant expansion. Last year, the company raised $275 million in a Series F round from investors including B Capital Group, Kaiser Permanente, and Generation Investment Management. It also completed several acquisitions, picking up AI-enabled specialty care startup Story Health in September 2025, Humbi AI in January 2025, and Cured and Pharmacy Quality Solutions in 2024.
The latest round of cuts may suggest that Innovaccer’s push into AI is prompting a significant reshaping of its workforce, even as the company continues to grow through acquisitions and funding.
Source: Inc42 Media