Pristyn Care, a surgery-focused hospital chain, has implemented a workforce reduction of seven per cent. The decision is said to be a part of its strategic initiatives aimed at achieving profitability and preparing for an upcoming initial public offering (IPO) in the coming years.
The company disclosed that it is discontinuing three redundant categories, impacting less than 7 per cent of the 1700 employees. Furthermore, it revealed that the layoffs will primarily affect its employees at the entry-level and support functions.
Along with workforce reductions, it has also decided to exit operations in six cities where it deemed the business value insufficient.
In a press release, the company stated that these changes are crucial to align with its strategic vision of enhancing efficiency, achieving performance excellence and ensuring long-term sustainability.
Additionally, it noted that all the affected employees will receive comprehensive support, including full notice periods, severance packages, and accelerated vesting of Employee Stock Ownership Plans (ESOPs) for the next three months. Moreover, the employees will also get an extended medical insurance coverage for themselves as well as their families for the subsequent six months.
This marks the second round of layoffs for the Gurugram-based company in the past year, following a previous reduction in March 2023 when around 45 employees were let go due to poor performance. The aim is to achieve a revenue of Rs 900 crore by 2024, reflecting a 100 per cent year-on-year growth.
Having entered the unicorn club in December 2021 after raising around $85 million from investors such as Peak XV Partners and Tiger Global, Pristyn Care further strengthened its position through the acquisition of Lybrate, a company backed by Ratan Tata and Tiger Global, in June 2022
