Heidi software to reduce global workforce by 18%
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Another company is being forced to partake in a dramatic AI-era overhaul.
It’s been a bad week for Australian startups-turned-tech-unicorns.
In a statement addressed to all staff on 4 November, Heidi co-founder and chief executive Tom Kelly said: “Today, we announced changes to Heidi’s structure and a reduction in the size of our team by about 18 per cent globally.
“We can now confirm that all invitations have been sent. If you have not received an invitation, your role is not affected by these changes. I know the uncertainty and waiting today would have been incredibly difficult.
“To those who are affected, I’m truly sorry for the impact this will have on you, your families and your teammates. You’ve put your talent, time and belief into Heidi, and as a leadership team, we take responsibility for the decisions that have brought us here.”
The platform, which describes itself as “the AI medical scribe for clinicians” and offers note-taking, dictation, and AI-enabled documentation preparation, was founded in January 2019 by Kelly, Waleed Mussa, and Yu Liu.
On the same day as the restructure announcement, a LinkedIn post by Kelly revealed that Mussa and Liu were departing the company, with Liu transitioning to an advisory role until March 2027.
In his blog post to staff, Kelly explained that the choice relates to a prioritisation of customer support, R&D streamlining, clearer business ownership, and more targeted team set-ups.
“Heidi is growing rapidly because clinicians around the world need and want our technology. We are investing in expanding our products, markets and team, and now support three million patient interactions every week,” he said.
“Unfortunately, it also means some roles will be impacted. These changes do not reflect the contribution, dedication or value of our departing Heidi’s.”
Kelly also explained that severance and benefits packages “that exceed statutory requirements” will be provided, and that the company will endeavour to help affected staff find new employment where possible.
“Next week, we will walk through the structure, priorities and path forward, with time for questions. Function and regional All Hands will follow to help teams understand what this means for their work,” he said.
“Today, our focus is on the people affected and following through on the support we have promised.”
The restructure comes just days after that of Australian graphic design company Canva, which will be culling or relocating 1,271 staff.
As reported by The Australian Financial Review in April, Heidi Health took Canva’s crown as the fastest-growing Australian technology company.
RELATED TERMS
An employee is a person who has signed a contract with a company to provide services in exchange for pay or benefits. Employees vary from other employees like contractors in that their employer has the legal authority to set their working conditions, hours, and working practises.
When a company can no longer support a certain job within the organisation, it redundancies that employee.
The term "workforce" or "labour force" refers to the group of people who are either employed or unemployed.
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