Cerebral

Mental-health startup Cerebral is laying off 285 employees, representing 15% of its workforce, as announced on February 27, 2023. This marks the company's third round of staff reductions in less than a year, following previous cuts in mid-2022 and October. CEO Dr. David Mou stated the layoffs are necessary to maintain a sustainable business and refocus on core patient services. The company, which provides telehealth for conditions like anxiety and depression, has faced significant turmoil, including federal investigations into its prescription practices for controlled substances like Adderall. These challenges have forced Cerebral to restructure in an effort to stay afloat after a period of rapid growth.

In October 2022, the telehealth unicorn Cerebral laid off approximately 400 employees, representing 20% of its staff, as part of a push for operational efficiencies and more sustainable growth. The SoftBank-backed digital health company, operating in the mental health care industry, primarily cut clinical staff and care counselors. This restructuring occurred amid ongoing scrutiny, including a Department of Justice investigation into its prescribing practices for ADHD medications like Adderall, which the company had since discontinued. Cerebral stated the layoffs were aimed at prioritizing clinical quality and safety while democratizing access to mental health care.

Cerebral on 2022-05-31.