Pristyn Care, a hospital chain that focuses on surgeries, has announced a workforce reduction of seven percent as part of its efforts to achieve profitability and prepare for an upcoming initial public offering (IPO) in the coming years. The company has decided to discontinue three redundant categories, which will impact approximately 1,700 employees. The layoffs will primarily affect entry-level and support function employees. Pristyn Care has also decided to exit operations in six cities, where it deemed the business value insufficient.
According to the company’s press release, these changes are necessary to align with its strategic vision of enhancing efficiency, achieving performance excellence, and ensuring long-term sustainability. 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. They will also get an extended medical insurance coverage for themselves and their families for the subsequent six months.
This marks the company’s second round of layoffs in the past year, with the first reduction occurring in March 2023 when around 45 employees were let go due to poor performance. The company aims to achieve a revenue of Rs 900 crore by 2024, reflecting a 100 percent year-on-year growth.
Pristyn Care entered the unicorn club in December 2021 after raising around $85 million from investors such as Peak XV Partners and Tiger Global. Its position was further strengthened through the acquisition of Lybrate, a company backed by Ratan Tata and Tiger Global, in June 2022.
