Calm, the corporate behind the meditation, stress and sleep app, has laid off 20% of its employees, in response to a memo despatched to staff on Thursday.
The Wall Avenue Journal reported that about 90 employees misplaced their jobs, and that Calm employed about 400 individuals. The memo from CEO David Ko mentioned the corporate is “not resistant to the impacts of the present financial surroundings.”
“We didn’t come to this determination frivolously, however are assured that these modifications will assist us prioritize the long run, give attention to development and turn out to be a extra environment friendly group,” Ko wrote within the memo.
THE LARGER TREND
Ko was beforehand CEO of Ripple Well being Group, an organization that made apps for care coordination and situation administration. It was acquired by Calm earlier this yr, and Ko was named co-CEO, alongside Michael Acton Smith. Ko took on the complete CEO function earlier this summer time.
Calm introduced it had scored $75 million in Sequence C funding in December 2020, boosting the corporate’s valuation to $2 billion. It had beforehand raised a complete of $115 million in Sequence B investments in 2019.
Various digital well being corporations have laid off employees in current months. TechCrunch just lately reported that digital pharmacy Truepill had laid off one other 175 employees, its third spherical of cuts thus far this yr.
Late final month, digital care firm Included Well being and digital therapeutics maker Pear Therapeutics made cuts. Included Well being mentioned it had diminished its workforce by lower than 6%, whereas Pear laid off round 25 staff, about 9% of its full-time employees.
Healthcare automation firm Olive additionally let go of about 450 employees in July and pivoted towards a brand new technique aimed toward extra shortly attaining profitability.
Different digital well being corporations pursuing layoffs this yr embody fee firm Cedar, digital pharmacy Capsule, wearable fitness-focused WHOOP, digital care firm Ro, at-home diagnostics firm Cue Well being and hybrid care supplier Carbon Well being.