Heidi Health, the Melbourne company behind an AI clinical notes scribe, is cutting about 18% of its global workforce, Startup Daily reports.

Co-founder and chief executive Dr Thomas Kelly told staff on Wednesday, the same day Canva announced a restructure affecting about 1,270 roles.

Why it’s cutting

Kelly said on LinkedIn that the company had not been putting its investment into the right teams and markets, even though it was still growing quickly. The changes include:

  • moving more customer support into product
  • combining research and development into one roadmap
  • giving new product businesses dedicated teams.

He said Heidi now supports three million patient interactions a week. Departing staff will get severance above legal minimums in every country, he said.

Heidi did not say how many people are affected. Startup Daily estimates at least 108 roles, based on a workforce of more than 600.

Co-founders depart

Two of Heidi’s three co-founders are leaving. Waleed Mussa will stay a few more weeks to hand over partnerships and work from the fundraise. Yu Liu will move to an advisory role on models and hardware until the end of March 2027.

Recent funding

The cuts come about six weeks after a $475 million funding package:

  • a US$100 million (A$140 million) Series C led by Blackbird, at a A$1.26 billion valuation
  • a separate US$240 million (A$335 million) growth facility from General Catalyst’s Customer Value Fund, which Startup Daily describes as debt for customer acquisition.