Headspace Health, a leading mental health and meditation app company, announced today that it is laying off 15% of its staff. The layoffs, which affect 181 employees, are part of a larger effort by the company to become cash-flow positive by 2024.
In an internal memo to employees, CEO Russell Glass said that the company had “underestimated” how much the current economic environment would affect consumer behavior. He also said that the layoffs were necessary to “prioritize the success of new initiatives” in 2024, including a journaling feature powered by artificial intelligence.
The layoffs come at a time when the tech industry is facing a wave of layoffs. Other companies that have recently announced layoffs include Netflix, Meta, and Twitter.
Headspace Health was founded in 2010 by Rich Pierson and Andy Puddicombe, a former Buddhist monk. The company’s meditation app has been downloaded more than 70 million times.
In 2021, Headspace Health acquired Ginger, a mental health coaching company, in a merger worth an estimated $3 billion. The company also acquired Shine, a mental health company that focuses on inclusive wellness content, and Sayana, a company that utilizes AI-powered chatting for user mood-tracking, in 2022.
The layoffs at Headspace Health are a sign of the challenges facing the tech industry in the current economic environment. However, the company is still committed to providing mental health services to its users.