Calm.com Inc., maker of common meditation and wellness app Calm, has laid off 20% of its employees, in response to a memo despatched by Chief Executive
David Ko
to workers on Thursday.
People acquainted with the matter stated San Francisco-based Calm employed roughly 400 folks, and that roughly 90 have been laid off.
“Regrettably, today we are reducing our overall workforce by 20%,” Mr. Ko’s memo stated. “While some of you will be impacted, all of you will be affected. I can assure you that this was not an easy decision, but it is especially difficult for a company like ours whose mission is focused on workplace mental health and wellness.”
In the memo, Mr. Ko wrote that Calm management had “revisited the investment thesis behind every project” earlier than deciding to make adjustments that will assist stabilize the enterprise.
“We did not come to this decision lightly, but are confident that these changes will help us prioritize the future, focus on growth and become a more efficient organization,” he wrote.
Mr. Ko’s memo didn’t elaborate on the explanations for the layoffs however promised workers “a more in-depth discussion on the future of the business” at an all-hands assembly scheduled for Friday. A Calm spokeswoman declined to make Mr. Ko out there for an interview.
One worker who was laid off stated firm management cited macroeconomic traits in explaining the layoffs and instructed workers that that they had tried to scale back bills in current months to keep away from reducing employees.
The worker and one other individual acquainted with the scenario stated roughly a dozen roles in Calm’s client advertising division have been eradicated as a part of the cuts.
Mr. Ko was named co-CEO of Calm earlier this 12 months alongside co-founder
Michael Acton Smith,
and have become sole CEO this summer season when Mr. Smith and co-founder
Alex Tew
stated they have been shifting into co-chairman roles.
Mr. Ko had beforehand been CEO at Ripple Health Group, a healthcare expertise agency acquired by Calm in February. Other former Ripple executives have additionally assumed management roles at Calm.
Bennett Porter,
a former advertising govt at Ripple, now leads Calm’s client advertising division and experiences to Vice President of Content
Greg Justice,
who was previously with TikTok.
Venture-capital companies a number of years in the past started pouring cash into Calm in addition to opponents similar to Headspace Health Inc., Happier Inc. and Modern Health Inc.
Calm was based in 2012 and have become the primary so-called unicorn within the meditation app trade in 2019.
It achieved a $2 billion greenback valuation the next 12 months after a $75 million fundraising spherical. Investors have included Lightspeed Venture Partners, TPG,
Goldman Sachs Group Inc.
and
Salesforce Inc.
Co-Chief Executive
Marc Benioff.
In current years, the corporate invested closely in advertising by hiring Mr. Justice and a former
Netflix
advertising govt, working adverts on broadcast tv, and sponsoring CNN’s protection of the 2020 election in addition to a 2021 HBO Max miniseries that includes
Kate Winslet,
Idris Elba
and different stars.
The worker and the opposite individual acquainted with the scenario stated Calm’s current cost-control measures included cuts to its advertising price range.
Write to Patrick Coffee at [email protected]
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