In an attempt to reduce costs, Bengaluru-based health tech start-up Practo has laid off its 41 employees citing the issue of poor performance. However, some employees raised the issue on LinkedIn and claimed to lose their jobs because of the company's restructuring process. Practo quickly reacted and denied any news regarding restructuring.
“We are not undergoing any restructuring at Practo. We are focused on strengthening our businesses and remain committed to our mission of building healthcare for a billion+ Indians. In the past year, we have hired over 500 talented individuals, and we plan to add another 500 Practeons to our team in the next 12 months, including backfill," the company said in a statement. It has also claimed that it will provide the necessary support to the impacted employees.
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Founded in 2008, Practo tries to build a healthy ecosystem, where patients will meet doctors and avail of the benefits conveniently. According to a report by the Financial Express (FE), the company has raised nearly $250 million from investors like Sequoia Capital, Matrix Partners India, Tencent, DST Global and others. It is currently valued at $418 million.
Last year, the Indian tech sector went through massive hardships. Nearly 20,000 employees lost their jobs. Highly valued tech companies like Byju's, Unacademy, and Vedantu were seen to cut their employee numbers as cost-cutting measures. This year has also not offered any difference as more than 24,000 workers have been laid off by multiple start-ups. Food tech giant Swiggy conducted the largest layoff by firing nearly 350 staff two months ago.
