Health and fitness startup HealthifyMe has trimmed its workforce by around 30% amid a sharpened focus on AI-driven solutions and global expansion plans, including an entry into the US market.

The layoffs have impacted employees across hierarchies and functions. This is the third such trim the company has undertaken in past two years.

According to its LinkedIn profile, the company had about 1,000 employees, prior to the latest restructuring exercise.

“We were informed of the layoff on Thursday. We were told that our severance pay will only come in 4 months’ time. The communication came as a shock to most of us, as the founder had only last month assured all employees in an internal communication that there will not be any more layoffs within the company,” a retrenched employee told Fe.

When contacted, a HealthifyMe spokesperson said the restructuring exercise is aimed at achieving profitability for the Indian operations by 2024 while simultaneously building capacity for its international foray. “At Healthify, we are committed towards achieving profitability for our India business in 2024. Concurrently, we are preparing for a significant expansion into the US and other global markets this year, where we are actively building capacity for future growth. In alignment with these goals, we have made the difficult decision of restructuring our team to streamline operations,” the spokesperson said.

The company assured support to impacted staffers. “We deeply understand the impact of these changes on our affected employees and will provide them robust support during this transition, including comprehensive severance packages, extended insurance coverage, and job placement assistance.”

HealthifyMe had raised $30 million in a pre-Series D round led by LeapFrog Investments, Khosla Ventures, FinnFund and Van Lanschot Kempen in January. The funds were to be deployed to bolster its AI play, talent acquisition and global expansion.

In FY23, the company reported a loss of Rs 142 crore, a 10% drop from Rs 157 crore it had incurred in FY22. Meanwhile, it’s revenue from operations rose by 29% to Rs 228.76 crore, during the same period, according to data gathered by TheKredible.