US-based meditation app Calm has axed 20% of its workforce, becoming the latest US tech company to announce job cuts.
The firm did not elaborate on the reason for the cuts, which affect about 90 people from its 400-person staff.
The tech sector generally is under pressure from investors to rein in costs as the boom in online activity triggered by the pandemic fades.
Boss Daniel Ko said the firm was “not immune” to the economic climate.
“In building out our strategic and financial plan, we revisited the investment thesis behind every project and it became clear that we need to make changes,” he wrote in a memo to staff.
“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.”
Co-founded in the US in 2012 by UK tech entrepreneur Michael Acton Smith, Calm benefited from a surge of demand for meditation apps set off by the 2020 Covid lockdowns.
By the end of that year, the firm said its app, which includes guided meditation and bedtime stories for all ages, had been downloaded more than 100 million times globally and attracted over 4 million paying members.
Investors valued the firm, which said it had been profitable since 2016, at $2bn.
But user engagement for Calm and other top meditation apps has fallen since 2020, though revenue in recent months has increased, according to research firm Apptopia, which tracks app performance.
“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,” Mr Ko said in the memo.
Mr Ko became boss of Calm this year, after the app acquired Ripple Health Group, a health tech company that he led. Calm said the move would help it expand and improve its offerings for businesses.
More than 500 start-ups have laid off staff this year, a sharp change from last year’s robust hiring, according to layoffs.ai, a website that tracks the announcements.