Healthcare unicorn Pristyn Care has undertaken a restructuring exercise, resulting in the reduction of approximately 120 jobs across various teams, as reported by the media.
Restructuring Initiative
The restructuring initiative aims to position the company for profitability in the financial year 2024-25 (FY25) and eventual public listing in 2027. According to sources cited by Inc42, less than 7 to 8 percent of the total workforce, comprising 1,700 employees, will be affected by the restructuring. The majority of the impacted positions are in entry-level and support functions.
Company Statement
A spokesperson for Pristyn Care stated that these adjustments are crucial to align with the company’s strategic objectives of efficiency, performance excellence, and long-term sustainability.
Employee Support
Impacted employees will receive a severance package based on their notice period, and the vesting of their Employee Stock Ownership Plan (ESOP) will be accelerated. Additionally, the startup has extended medical insurance coverage for the affected employees and their families for the next six months.
Previous Workforce Reduction
Last year, Pristyn Care reportedly laid off up to 350 employees across various departments, including sales, technology, and product teams. However, the startup clarified that only approximately 45 employees were terminated based on performance.
Financial Performance
Despite the workforce restructuring, Pristyn Care reported a 45 percent revenue growth to Rs 453 crore in FY23. However, its losses also increased by 38.2 percent to Rs 383 crore in the last fiscal year.
