The US-based meditation app Calm has laid off 20% of its workforce, becoming the latest US tech startup to announce job cuts.

The firm’s boss, David Ko, said the company, which has now axed about 90 people from its 400-person staff, 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 said 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.”

The Calm app, founded in 2012, offers guided meditation and bedtime stories for people of all ages. It received a surge of downloads triggered by the 2020 Covid lockdowns. By the end of that year, the software company said the app had been downloaded more than 100 million times globally and had amassed over 4 million paying subscribers.

Investors valued the firm, which said it had been profitable since 2016, at $2bn.

In the memo, Ko went on: “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.”

More than 500 startups have laid off staff this year, according to layoffs.fyi, a website that tracks such announcements.