The year 2023 has been a tumultuous one for employees as the wave of layoffs continues. There is a shortage of jobs as thousands of employees are let go by many companies, especially by tech giants, unicorns and startups. However, it seems that even the health sector is not safe from this wave of layoffs. Business Insider has reported that Cerebral, a US-based mental-health startup, is laying off 15 percent of its workforce.
The Wall Street Journal cited a company spokesperson as saying that the layoffs come as part of Cerebral’s year-long plan to restructure the company and focus on patient services.
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In an email to employees, CEO Dr. David Moe said the cuts were necessary to maintain a sustainable business and “to ensure we can continue to provide care to our patients in need,” Business Insider reports. ”
The company also said that affected employees will be fully supported with extended severance pay and benefits as well as outplacement services.
The number of employees or the exact number of employees being laid off is not yet known, although Business Insider reported that it will lay off 285 people in its third round of job cuts.
Earlier in October 2022, the company had laid off 20 percent of its employees.
The Wall Street Journal reported that the company was launched in the year 2020 and attracted hundreds of thousands of patients with social-media ads and quick prescriptions for attention-deficit hyperactivity disorder and other mental-health conditions.
In 2021, it was valued at $4.8 billion, less than two years after its launch, according to PitchBook which tracks private companies.
Meanwhile, reports also suggest that layoffs have also taken place as the company is undergoing increased scrutiny and federal investigation into its prescribing practices.
Cerebral faces investigations from various authorities, including the US Federal Trade Commission, over whether the company engaged in deceptive or unfair practices related to the advertising or marketing of mental health services.
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