Heidi Health is cutting about 18% of its global workforce, roughly 108 roles, and losing two of its three co-founders, six weeks after announcing a $475M funding package.
Growth was not the problem
Chief executive Tom Kelly told staff the Melbourne company now supports three million patient interactions a week and is still expanding products and markets. The cuts came from a review of where people and money were pointed, not from a demand collapse.
The restructure pulls customer support into product, consolidates R&D under a single roadmap, and hands the newer product lines dedicated teams and clearer ownership.
The exits
Co-founders Waleed Mussa, the chief financial officer, and Yu Liu, the chief technology officer, are leaving for different reasons. Mussa stays a couple of weeks to finish work tied to the raise and hand over partnerships. Liu moves to an advisory role on models and hardware through March 2027.
Kelly called the departures sad news and said the pair built Heidi with him.
Reading the timing
The company raised a $140M Series C led by Blackbird at a A$1.26B valuation in September, plus a separate $240M debt facility from General Catalyst’s Customer Value Fund.
Kelly has said revenue reached $50M annual recurring. The cuts land in the same week Canva announced a 22% restructure, which is worth noting for anyone modeling Australian health tech as a growth-at-all-costs market. Severance exceeds statutory minimums in every country, Kelly said.
