Sizing a Pivot Into Asset-Heavy Care: Even Healthcare's 350-Job Cut

Even Healthcare cut about 350 jobs, roughly 30% to 35% of its workforce, as it reorganized. The cuts happened while Khosla Ventures, an existing investor, was leading Even's $50 million raise.

Even's FY25 operating revenue was Rs 27.2 crore, up from Rs 8.3 crore in FY24, and its losses expanded from Rs 72.4 crore to Rs 90.2 crore in the same interval.

For founders and investors, the question is whether a pivot from recurring revenue into hospital operations can be funded without relying on money that has not arrived. The test is a short list.

• Tranche coverage: can committed cash fund the next hospital opening?
• Hospital capex vs post-cut margin: can the new hospital cost base be paid after the cut?
• Cut placement: did the cuts remove old subscription or insurance functions rather than hospital delivery?

Committed cash sets the real limit

Map the money already in hand before you sign leases or hire clinicians. A useful table has four lines: committed cash, committed capex, committed payroll, and the date the remaining money is expected. Even had secured $21 million as the initial tranche, and the rest of the round was still to arrive. It had also obtained $20 million in January 2026 from Lachy Groom and Alpha Wave Global, after a $30 million round in 2024, and its cumulative funding exceeded $70 million.

Start with what the committed cash can fund for the next hospital opening, not the whole network. A hospital plan that depends on the remaining money depends on timing. If the lead investor slows, the company still needs to pay for beds, staff, and supplies. The table should show the shortfall in plain terms: cash in, cash out, and the date the shortfall becomes dangerous.

A founder should be able to say which hospital functions are paid by committed cash and which are paid by future money. If the answer is unclear, the capex is not sequenced. Use the committed tranche as the only cash you can count on before the remaining money lands. If the hospital plan needs more than that, the pivot is underfunded. A lead can signal confidence, but it does not turn a promised tranche into available cash.

Hospital capex must be paid by post-cut margin

Price the hospital before you celebrate the pivot. A unit model should show what a bed, a visit, or an admission costs after rent, staffing, equipment, and maintenance. Even started its first hospital in Bengaluru and wants to grow that hospital network. Build the model from the hospital's daily costs, including the costs that do not show up in a recurring-revenue business: consumables, clinical staffing, and the idle capacity that still draws payroll.

A recurring-revenue company can scale by adding users. A hospital scales by adding beds, and those beds require funding before they open. Compare the loss trend against the new hospital cost base. If the post-cut margin cannot cover the incremental capex, the raise is buying time, not a path to profitability. The comparison should show four lines: current losses, expected hospital costs, expected hospital revenue, and the point where the new margin covers the added spend.

Then check whether the revenue growth is coming from the new hospital or from the old insurance business. If the old business is still supporting the income statement, the pivot is not yet paying for itself. An investor should ask what happens if admissions come in below plan. The answer should be a clear plan: which costs flex, which contracts pause, and which hospital functions stay protected.

Cuts should leave delivery intact

Cut the old business, not the new one. The easier-to-defend reorg removes insurance-era functions, legacy sales, and support teams that no longer serve the hospital model. Even redirected spending from its prior insurance-based business toward operating hospital-led care while it sought the raise.

The clearest cut removes the functions that existed to sell the old model: policy administration, insurance marketing, legacy customer success, and internal teams that no longer touch the hospital. The worst cut removes the people who keep the new model running: nurses, technicians, patient coordinators, and facility staff.

Ask who is being cut by function, not by seniority. A reorg that trims the old functions but leaves the hospital team thin is a poor choice. It makes the cost base smaller while making the new business harder to deliver. Check whether the removed roles sit in the old subscription or insurance functions. If the cuts reach hospital staffing, patient operations, or clinical support, the new model is being weakened before it can prove itself.