Meditation and mental health company Headspace Health has confirmed that the company has 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 was released about 4% of the workforce, i.e. around 50 employees.
The company’s CEO, Russell Glass, announced the recent layoffs in an internal memo to employees, saying the company underestimated how the current economic environment would affect consumer behavior.
“With the privilege of supporting the mental health and well-being of millions of people around the world comes a great responsibility to focus on the health of our business and to secure it for the future. On June 29th, we announced several important changes to our strategy. We have expanded the organizational structure at Headspace, including reducing our workforce by 15%. These changes will future-proof the company and pave a strong path to profitability. We are deeply grateful for the employees we have said goodbye to and who we are deeply committed to supporting. “We are helping them through this time of transition,” said a Headspace Health spokesperson Mobile Health News in an email.
THE BIGGER TREND
In 2021, Headspace Health was founded through the merger of meditation app Headspace and mental health company Ginger.
Since the union, the company has acquired other mental health-focused startups, including Sayana, maker of AI-powered mental health monitoring and sleep apps, and the Shine app, a mental wellbeing platform focused on culturally competent and inclusive offerings.
In January, the digital mental health company said it will start offering its clinical care services to businesses in the UK from 2023 and expand into other international markets.
