Meditation and mental health company Headspace Health has confirmed it laid off 181 workers or about 15% of its workforce.
The cuts are the second round of layoffs for the company in the past year. In December, it laid off about 4% of its workforce, or approximately 50 workers.
The company’s CEO, Russell Glass, announced the recent layoffs in an internal memo to employees, stating that the company underestimated how the current economic environment would impact consumer behavior.
“With the privilege of supporting the mental health and wellbeing of millions of people around the world also comes great responsibility to focus on the health of our business and safeguard it for the future. On June 29th, we announced several important changes to our strategy and organizational structure at Headspace, including reducing the size of our workforce by 15%. These changes will equip the company for the future and pave a strong path to profitability. We’re deeply grateful for the employees we said goodbye to and are committed to supporting them through this time of transition,” a Headspace Health spokesperson told MobiHealthNews in an email.
THE LARGER TREND
In 2021, Headspace Health was formed through the merger of meditation app Headspace and mental health company Ginger.
Since the union, the company has scooped up other mental health-focused startups, including Sayana, maker of AI-enabled mental health-tracking and sleep apps, and Shine app, a mental wellness platform focused on culturally competent and inclusive offerings.
In January, the digital mental health company said it would begin offering its clinical care services to companies in the U.K. and expand into other international markets in 2023.
