Cerebral lays off 15% of staff

Virtual mental health startup Cerebral is laying off 285 employees, or about 15 percent of its staff, The Wall Street Journal reported Feb. 27.

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The most recent layoffs are the company’s third round of layoffs this year, according to the media outlet. Cerebral cut about 20 percent of its staff in October. 

After the Justice Department started an investigation in May into the company’s controlled substances prescriptions over allegations of misleading advertising practices, the startup suspended prescribing all controlled substances. 

Digital health funding decreased by 57 percent in 2022, which may affect the entire telepsychiatry industry. 

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