Heidi Health to reduce workforce by 18 percent
Melbourne-based healthcare AI firm Heidi Health is cutting 18% of its staff as it navigates increased competition and shifting market demands.
Heidi Health, a developer of AI-driven medical documentation software, has announced a reduction of 18% of its workforce. The company cited volatile sales performance and intensifying competition within the United States market as primary drivers for the restructuring.
CEO Thomas Kelly stated that the company’s headcount expansion—from roughly 80 employees at the end of 2024 to over 600—was based on optimistic projections regarding the adoption rate of its technology by large health systems. Consequently, the firm now intends to move some roles overseas while streamlining its research, customer support, and sales operations.
The staff cuts were announced one day after the departures of CTO Yu Liu and CFO Waleed Mussa. This contraction follows a period of rapid funding; the company raised US$140 million just two months ago, securing a valuation that granted it unicorn status.
Market pressure is mounting as traditional healthcare software providers enter the space. Notably, Epic Systems launched its own AI scribe functionality in February, intensifying the competitive landscape for specialized startups like Heidi Health.