Digital mental health ‘unicorn’ Headspace Health on Thursday laid off 181 employees, or 15% of its workforce.
The reductions will help Headspace pave the way to profitability, the company said in a statement. This is Headspace’s second round of layoffs in the past year, as it cut 50 employees in December.
Headspace provides mediation materials, behavioral health coaching, medical and psychiatric services directly to consumers as well as to employers and health plan clients. Russell Glass, CEO of Headspace Health Told Modern Healthcare In November, inflation and economic constraints posed challenges to the consumer outlook for subscription services.
“Consumers are struggling. They are facing inflation, economic headwinds and their mental health needs are on the rise,” Glass said. “We are looking for different ways to reach them that reduce their out-of-pocket costs, which is why our health plan deals are so important.”
When Headspace Health Came Together Headspace and Ginger merged A deal due in August 2021 valued the combined company at $3 billion at the time.
In form of The digital health funding market has shifted to the downside, Some companies once considered unicorns have had to lay off employees, sell off lagging businesses, and even file for bankruptcy. Some are focusing on new product lines while others are moving on.