Osegi
Startups·2 min read

Heidi cuts 18% of staff as two cofounders leave after funding round

Australian AI clinical notes startup Heidi is cutting 18% of its workforce and losing two of its three cofounders, weeks after a major funding round.

Office workers at a Melbourne health technology startup during a company-wide meeting about a restructure.
Image: Startup Daily
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Heidi, the Melbourne-based AI health company valued at A$1.26 billion, is cutting 18% of its headcount and will lose two of its three cofounders, only weeks after raising a large round of capital.

Cofounder and CEO Dr Thomas Kelly told staff of the restructure on Wednesday, the same day Canva announced cuts affecting 22% of its workforce, or around 1270 people. In a LinkedIn post, Kelly said the company had reviewed its structure and concluded it was not putting investment into the right teams and markets to make the most of its growth. "It's painful, but it's what we need to do now," he wrote.

What changes inside Heidi

According to Kelly, more customer support will move into product, research and development will be combined under a single roadmap, and the company's newer product businesses will get clearer ownership and dedicated teams. He said Heidi now supports three million patient interactions every week. The number of departing employees and the locations affected were not disclosed.

Kelly apologised to those affected and said the leadership team takes responsibility for the decisions. Departing staff will receive severance and benefits packages that exceed statutory requirements in every country, and Heidi will outline its new structure and priorities next week, followed by meetings for individual functions and regions.

Two cofounders step away

Waleed Mussa and Yu Liu are also leaving. Mussa is taking time with his family and will stay for a couple of weeks to finish outstanding work from the fundraise and hand over partnerships. Liu will move into an advisory role focused on models and hardware through the end of March 2027. Kelly said both left for different reasons and that continuing without them would be hard.

Kelly's partnership with Mussa dates back to 2015, when Mussa hired him at medical entrance exam preparation business Fraser's GAMSAT. Mussa backed Oscer, Heidi's earlier incarnation, within Fraser's in 2019.

The timing stands out. In September, Heidi raised US$100 million (A$140 million) in a Series C led by Blackbird. General Catalyst's Customer Value Fund also led a separate US$240 million (A$335 million) debt facility for customer acquisition, bringing the combined funding to about A$475 million.

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