Cerebral Inc., the telehealth startup focused on mental-health care, is cutting staff in a restructuring that will affect 20% of its workforce, Chief Executive Officer David Mou said in an internal email Monday.
“This is a challenging time for many companies,” Mou wrote in the email, which was viewed by Bloomberg News. “In order to continue to work towards our mission, we have a duty to our patients to ensure our business is healthy and sustainable throughout challenging economic times.”
Affected staff will be notified over the course of the week and the job reductions will impact “all divisions,” including operations, support and clinical care, the email said. The cuts will affect both full-time employees and independent contractors, who worked in patient-facing positions providing counseling and clinical services via telehealth appointments, according to a person familiar with the changes.
Closely held Cerebral came under scrutiny in the spring after a Bloomberg News investigation into its prescribing practices of controlled medications such as the ADHD treatment Adderall. The US Department of Justice is probing possible violations of the Controlled Substance Act and has not accused Cerebral of violating the law. The company previously announced layoffs in May.
In the email, Cerebral reduced growth targets and said it would reinvest marketing spending in clinical quality and safety efforts.
“These changes are focused specifically on realizing operational efficiencies while prioritizing clinical quality and safety across the organization,” a Cerebral spokesperson said in a statement. “They will enable the company to pursue a patient-first growth model that supports and empowers clinicians.”
Earlier this month, Mou said in an internal email that the company would end its so-called care counselor program, which paired clients with a staff member who would help them with coping techniques and exercises. In the email, Mou said a “minority” of patients with access to the service used it, and “only a small number” consistently used the service. Some of those care counselors were given notices of termination on Monday, according to video viewed by Bloomberg News.
