Thursday, March 30, 2023

Telehealth startup Cerebral to reduce 15% of workforce

PUNJAB NEWS LINE | February 28, 2023 12:56 PM

San Francisco:US-based telehealth startup Cerebral has announced to lay off around 15 per cent of its workforce in a fresh round of job cuts, the media reported.

The layoffs are part of Cerebral's yearlong plan to reorganise the company and focus on the services patients want, reports The Wall Street Journal, citing sources.

However, it has not been confirmed how many jobs will be affected and in which areas.

Cerebral, which launched in 2020, has attracted hundreds of thousands of patients through social media ads and quick prescriptions for ADHD (attention-deficit hyperactivity disorder) and other mental health conditions, said the report.

According to PitchBook, which tracks private companies, the telehealth startup had a valuation of $4.8 billion in 2021, less than two years after it launched.

In October last year, the company laid off 20 per cent of its employees, as part of an effort to meet patient demand and lower growth targets, mentioned the report.

Cerebral had 2,500 employees as of March 2022, before the layoffs, the report added.

Meanwhile, Swedish telecom gear maker Ericsson is laying off about 8 per cent of its workforce, around 8,500 employees, to cut costs in the ongoing global macroeconomic conditions.

According to an internal memo sent to employees, the company said the headcount reduction has been conveyed to employees in several countries.


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