Indonesian health tech company Halodoc has laid off a “significant” portion of its workforce as part of measures to manage the massive changes brought about by the current global and domestic macroeconomic situation, according to a statement shared by the company.
The downsizing exercise is said to have impacted a “significant portion” of the company’s headcount although the spokesperson did not share further details.
“This is not an easy decision, but it is necessary to ensure that we remain on the right path for sustainable business growth. In this process, the company has fulfilled the rights of affected employees in accordance with applicable regulations and laws,” said Adeline Hindarto, Halodoc’s VP of Government Relations and Corporate Affairs, in a statement.
Founded in 2016, Halodoc offers long-distance consultations with doctors and offers online drug delivery services on its app.
During the pandemic, it also provided a platform to help patients book COVID-19 tests and hospital appointments. It has connected to over 3,300 hospitals, and 4,900 pharmacies and has over 20 million active users as of 2022
Earlier in July, Halodoc raised a $100-million Series D round led by existing backer Astra with participation from other returning investors Openspace and Novo Holdings. Its latest financing brings Halodoc’s total external fundraising to over $250 million to date. Its other prominent backers include the Bill & Melinda Gates Foundation, Allianz X, Gojek’s Go-Ventures, and Singtel Innov8.
“As a technology company in the healthcare industry, adaptation and agility have always been our mantras during our journey of growth in Indonesia. However, in the current industry climate, regular adaptive measures are no longer sufficient,” said Hindarto. To prepare the organization in a rapidly evolving industry, an adjustment of organizational capacity or rightsizing is required, she added.
“This step will help ensure better productivity across the company, including by enhancing human resource allocation and employee skill development, and allow us to better capitalize on the opportunities in the healthcare industry that Halodoc is a leading player in,” Hindarto continued.
Telemedicine platforms gained high traction during the pandemic in Indonesia and SE Asia. Although demand for online doctor consultations dwindled post-pandemic, startups in this area still managed to secure notable funding this year. Venture investments in Southeast Asian healthtech startups surged in the third quarter of 2023, defying the overall funding downtrend in the region.
Halodoc marked the highest health tech investment in SE Asia in Q3 this year. Other notable startups that raised funding rounds last quarter include Gene Solutions, which bagged a $21 million Series B round from Mekong Capital in September, and Engine Biosciences, which raised a $27 million Series A extension round led by Polaris Partners last month.