Heidi, the Melbourne-based healthcare AI company specializing in automated clinical documentation, is cutting approximately 18% of its global workforce as part of a broader operational restructuring. The decision comes just six weeks after the company announced a A$475 million financing package and coincides with the planned departures of two of its three co-founders.
With more than 600 employees worldwide, the workforce reduction is expected to affect at least 108 positions, although Heidi has not disclosed the exact number or geographic distribution of the layoffs. CEO and co-founder Dr. Thomas Kelly explained that the restructuring reflects a need to better align staffing and investment with the company's growth priorities rather than a decline in demand for its technology.
The reorganization will involve moving more customer support responsibilities into product teams, consolidating research and development under a unified roadmap and establishing clearer accountability across Heidi's newer product businesses. The company says it continues to expand its operations and currently supports approximately three million patient interactions each week through its AI-powered clinical documentation technology.
The restructuring follows Heidi's September financing announcement, which included a $100 million Series C round and a separate $240 million growth financing facility. The Series C valued the company at approximately $1.26 billion, while the additional debt financing was intended to support customer acquisition and commercial expansion.
The company is also preparing for significant leadership changes. Co-founder Waleed Mussa will depart after completing fundraising and partnership handovers, while co-founder Yu Liu will transition into an advisory role focused on AI models and hardware through March 2027. Kelly will remain CEO and oversee the company's revised organizational structure and growth strategy.
Heidi says affected employees will receive severance and benefits packages exceeding statutory requirements in their respective countries. The company plans to communicate its updated organizational structure and priorities to employees, positioning the changes as part of its efforts to support continued expansion and product development.
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