Heidi Health, a Melbourne-based medical software company, told staff it would cut 18% of its workforce after two co-founders announced their departures, citing volatile sales and rising competition in the US.

Chief executive Thomas Kelly said some roles would move overseas as the company reshapes its research and development, customer support, and sales teams.

The restructuring comes about two months after Heidi raised US$140 million and became a unicorn.

Kelly said Heidi’s headcount grew from about 80 at the end of 2024 to more than 600, but the company had too many enterprise-focused roles because it was too optimistic about how quickly large health systems would adopt its technology.

The cuts were announced a day after CTO Yu Liu and CFO Waleed Mussa said they would leave.

Rival healthcare software company Epic Systems introduced its own AI scribe feature in February.

🔗 Source: Australian Financial Review

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