Innovaccer Cuts 340 Jobs Across India, US Amid Shift to AI-Native Operations

Innovaccer has laid off around 340 employees across India and the United States as the healthcare technology unicorn restructures its operations around an ‘AI-native’ model, according to an internal email circulated online.

The San Francisco-headquartered company, founded by Indian entrepreneurs, is undertaking the restructuring as part of a broader push toward automation and AI-driven workflows. Screenshots of an email allegedly sent by Co-Founder and CEO Abhinav Shashank surfaced on social media, though the authenticity of the communication could not be independently verified.

In the message titled ‘Moving Forward as an AI-Native Company’, Shashank reportedly acknowledged the impact of the decision on employees.

“Today is a difficult day for us at Innovaccer, and I want to name that plainly before anything else,” the email stated.

According to reports, affected employees were informed that the company’s PR team would communicate details related to role terminations, severance packages and transition support.

The latest move marks Innovaccer’s third round of layoffs in four years, reflecting a wider trend across the global technology industry where companies are reorganising teams and operational structures around AI adoption.

The company has not publicly disclosed the exact split of affected employees between India and the US, the teams impacted, or whether additional workforce restructuring is planned.

In the internal communication, Shashank reportedly linked the layoffs directly to Innovaccer’s future operating strategy, describing the company’s next phase as an ‘AI-native’ organisation focused on automation-led efficiency and AI-integrated product development.

The layoffs come amid growing adoption of generative AI tools across the technology sector, where companies are increasingly deploying automation in coding, analytics, enterprise operations and customer support functions.

Founded by Shashank, Kanav Hasija and Sandeep Gupta, Innovaccer develops healthcare data integration and analytics platforms used by hospitals, insurers and healthcare providers.

The company focuses on unifying healthcare and patient data to improve operational and clinical decision-making. According to reports citing investment firm WestBridge Capital, the startup’s origins trace back to a data-sharing academic project associated with Harvard University and The Wharton School.

Innovaccer has reportedly raised around $675 million in funding and was last valued at approximately $3.45 billion.