Telehealth unicorn Cerebral lays off 20% of staff for ‘operational efficiencies’ • TechCrunch

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Cerebral is laying off 20% of its staff, citing an ongoing drive for efficiencies at digital health unicorn.

A Cerebral spokesperson confirmed the layoffs to TechCrunch but did not share the exact number of employees affected. according to The Wall Street Journalwho first reported the news, and from the insideabout 400 people will lose their jobs, mainly medical staff and care advisors.

“Today’s changes are part of Cerebral’s ongoing transformation program, which is driving the creation of more sustainable growth and stability, while advancing our mission to democratize access to high-quality mental health care for all,” a Cerebal spokesperson told TechCrunch. “These changes are specifically focused on achieving operational efficiencies while prioritizing clinical quality and safety across the organization.”

The company did not explain what compensation, if any, was offered to employees, but told TechCrunch “We are doing everything we can to support our impacted colleagues as they pursue other opportunities.”

The Cerebral model shows that care advisors meet with patients regularly to administer medications prescribed by physicians and provide support.

The SoftBank-backed company has been audited to facilitate the delivery of ADHD medications to potential customers. Maybe it’s too easy: The allegations led to an investigation, by the Department of Justice, into possible violations of the Controlled Substances Act due to overprescribing of prescription drugs like Adderall.

a lawsuit The company was also sued by Matthew Truby, a former vice president of products and engineering, alleging that senior company officials encouraged Cerebral employees to prescribe stimulants to all ADHD patients. according to press releaseThe company has since stopped providing these services, citing the need to review clinical quality and safety processes.

“Based on recent comments from stakeholders, this has clearly become a distraction from our focus on democratizing access to mental health care services, providing treatment to more patients and adding service lines for new conditions,” Robertson said in the statement.

The San Francisco-based company has raised more than $426 million since its founding in 2020, $300 million of which was announced in Series C last December. The brain is valued at $4.8 billion, according to behavioral health work.

Earlier this year, Cerebral laid off “hundreds” of people which primarily impacted its support team and operations to improve its software. At the time, the company did not provide any details to TechCrunch explaining any employee termination.

Cerebral is just one of several healthcare startups that have made cuts in the past few months, such as truffle And the sleep.

Current and former Cerebral employees can contact Andrew Mendez by email at andrew.mendez@techcrunch.com or at Signal, a secure encrypted messaging app, at 669-832-6800.

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