(Reuters) – Telehealth startup Cerebral said on Monday it is cutting its workforce by about 15% following a year of increased scrutiny and federal investigations into its prescribing practices.
The Business Insider reported earlier in the day that the company, which provides mental health services through its telehealth platform, would be laying off 285 people in its third round of job cuts in less than a year.
Last October, the company had cut its workforce by 20%.
“Affected employees will be fully supported with extended severance pay and benefits, as well as outplacement services,” the company said on Monday, without providing details on its staff strength or the number of employees being laid off.
The announcement comes as Cerebral faces investigations from various authorities, including the U.S. Federal Trade Commission, into whether the company engaged in deceptive or unfair practices related to advertising or marketing of mental health services.
(Reporting by Pratik Jain; Editing by Sherry Jacob-Phillips)
