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Meditation App Calm Lays Off 20% of Staff

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Calm.com Inc., maker of common meditation and wellness app Calm, has laid off 20% of its employees, in keeping with a memo despatched by Chief Government

David Ko

to staff on Thursday.

Folks conversant in the matter stated San Francisco-based Calm employed roughly 400 individuals, and that roughly 90 have been laid off.

“Regrettably, as we speak we’re decreasing our total workforce by 20%,” Mr. Ko’s memo stated. “Whereas a few of you can be impacted, all of you can be affected. I can guarantee you that this was not a simple resolution, however it’s particularly troublesome for an organization like ours whose mission is targeted on office psychological well being and wellness.”

Within the memo, Mr. Ko wrote that Calm management had “revisited the funding thesis behind each undertaking” earlier than deciding to make modifications that may assist stabilize the enterprise.

“We didn’t come to this resolution calmly, however are assured that these modifications will assist us prioritize the long run, deal with development and turn out to be a extra environment friendly group,” he wrote.

Mr. Ko’s memo didn’t elaborate on the explanations for the layoffs however promised staff “a extra in-depth dialogue on the way forward for the enterprise” at an all-hands assembly scheduled for Friday. A Calm spokeswoman declined to make Mr. Ko obtainable for an interview.

Calm.com Chief Government David Ko in 2019.



Picture:

Travis P Ball/Getty Photographs for SXSW

One worker who was laid off stated firm management cited macroeconomic developments in explaining the layoffs and instructed staff that that they had tried to cut back bills in latest months to keep away from reducing employees.

The worker and one other particular person conversant in the state of affairs 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 time when Mr. Smith and co-founder

Alex Tew

stated they have been transferring into co-chairman roles.

Mr. Ko had beforehand been CEO at Ripple Well being Group, a healthcare expertise agency acquired by Calm in February. Different former Ripple executives have additionally assumed management roles at Calm.

Bennett Porter,

a former advertising government at Ripple, now leads Calm’s client advertising division and reviews to Vice President of Content material

Greg Justice,

who was previously with TikTok.

Enterprise-capital companies a number of years in the past started pouring money into Calm in addition to opponents similar to Headspace Well being Inc., Happier Inc. and Fashionable Well being Inc.

Calm was based in 2012 and have become the first so-called unicorn in the meditation app industry in 2019.

It achieved a $2 billion greenback valuation the next 12 months after a $75 million fundraising spherical. Buyers have included Lightspeed Enterprise Companions, TPG,

Goldman Sachs Group Inc.

and

Salesforce Inc.

Co-Chief Government

Marc Benioff.

In recent times, the corporate invested closely in advertising by hiring Mr. Justice and a former

Netflix

advertising government, 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 particular person conversant in the state of affairs stated Calm’s latest cost-control measures included cuts to its advertising funds.

Write to Patrick Espresso at [email protected]

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