A troubling wave of ABA therapy provider layoffs is sweeping across the United States, even as the need for autism services climbs to unprecedented levels. Leading applied behavior analysis (ABA) providers such as 360 Behavioral Health and The Center for Autism & Related Disorders (CARD) have made headlines with massive staffing cuts—503 and 156 employees laid off, respectively. These are not isolated incidents. Social media posts and state WARN reports suggest a broader pattern of closures, consolidations, and layoffs across the autism services landscape. The cuts are hitting clinicians, administrators, and technicians alike, raising questions about the stability of care for thousands of families who rely on ABA therapy.
This unsettling trend comes at a time when autism diagnoses are rising. According to the Centers for Disease Control and Prevention (CDC), 1 in 44 children in the U.S. is diagnosed with autism spectrum disorder. Boys are four times more likely to receive a diagnosis than girls, and 1 in 6 children today lives with some form of developmental disability. Despite this surge in need, many providers are trimming their operations due to financial strain. Industry leaders point to stagnant reimbursement rates from insurance companies and the growing cost of labor as key drivers behind the current wave of ABA therapy provider layoffs.
Inside the Cuts: Financial Pressure and Strategic Downsizing
Rob Marsh, CEO of 360 Behavioral Health, described the organization’s recent layoffs as the result of multiple intersecting challenges. “Rates from the payers and reimbursement have been very stagnant, and… the pressure on wages has been increasing,” Marsh said. “To a point, it just becomes unsustainable.” After reviewing its operations, the company made the decision to consolidate services and exit certain markets altogether. The organization, which formed in 2018 and operates in California and Idaho, laid off over 500 employees while maintaining job postings across direct care, clinical, and business development roles.
The story is similar at CARD, which will shut down all 10 of its Oregon centers, affecting 156 positions. In a statement, the company said the closures followed failed negotiations with healthcare plan partners to obtain increased reimbursement that could keep pace with rising costs. “While some of our healthcare plan partners recognized and addressed the need for increased reimbursement, we, unfortunately, were not able to achieve adequate overall levels from all our partners,” CARD stated. As one of the country’s most recognizable ABA providers—once operating in 24 states with over 220 locations—CARD’s reduction is a major marker in the broader landscape of ABA therapy provider layoffs.
Tech Startups and Smaller Providers Also Affected
The economic instability isn’t limited to traditional clinic-based providers. Elemy, a tech-driven pediatric behavioral health company that offers virtual ABA services, has also reduced its workforce. Despite a $219 million fundraising round in 2021 and a $1.2 billion valuation, the company announced a restructuring in response to market conditions. Amanda Taggart, Elemy’s chief communications officer, stated, “Our focus will be on efficiently scaling our California, Florida, and Texas markets… This restructuring impacted only a small percentage of our community.” Still, the move underscores how ABA therapy provider layoffs are affecting even the best-funded, fast-growing firms in the space.
Conversations on Reddit and LinkedIn have brought attention to cuts at other large providers like Acorn Health. But in contrast to the industry trend, Acorn’s CEO Vicki Kroviak posted that the company is actively recruiting in nearly every market. “You may have heard that there are major staff reductions happening in the ABA Industry,” she wrote. “I want you to know that Acorn Health is actively hiring… to move kids with autism towards more independent and meaningful lives.” While some providers are contracting, others appear to be doubling down on growth—suggesting a future where market consolidation may leave fewer but larger players standing.
A Private Equity-Backed Industry: Investment Continues Despite Turbulence
Even with the current climate of ABA therapy provider layoffs, private equity interest in the autism services sector remains strong. In July, The Stepping Stones Group—backed by Five Arrows Capital Partners—acquired Oceanside. Frontline Healthcare Partners also acquired stakes in Tennessee-based JoyBridge Kids and California-based Bay Area Clinical Associates earlier in the year. Additionally, Enhanced Healthcare Partners recently announced its acquisition of Los Angeles-based Howard J. Chudler & Associates, further signaling that capital investment in ABA therapy has not cooled.
These deals reflect a belief among investors that the sector will rebound and continue to grow in the long term. Yet, the influx of private equity has also sparked concern among critics who worry that financial motives may conflict with clinical best practices and long-term patient outcomes. With investors now playing a large role in shaping service delivery, the pressure to reduce costs may be contributing to the very trend of ABA therapy provider layoffs now disrupting care for thousands.
The Impact on Families and the Road Ahead
The most significant concern amidst all of this is how families will be affected. For many, the sudden loss of a trusted therapist or clinic location can be a major setback, interrupting care plans and delaying developmental progress for children. Waitlists for ABA therapy are already notoriously long in many parts of the country, and ABA therapy provider layoffs risk exacerbating this issue by reducing the number of available therapists and clinics.
To meet rising demand and ensure sustainable operations, systemic change is needed. Advocacy groups and providers alike are calling for updated reimbursement models that reflect the true cost of care, support for workforce development, and better collaboration between payers and providers. Without these reforms, experts warn that ABA therapy provider layoffs could become a recurring challenge—ultimately putting critical services out of reach for those who need them most.
Despite the uncertainty, families and providers remain resilient. As some companies downsize or close entirely, others are exploring new models of care delivery, including hybrid and telehealth-based ABA programs. If successful, these innovations could offer a more scalable and accessible approach to therapy. But until the financial framework catches up with the clinical reality, the pattern of ABA therapy provider layoffs is likely to continue—posing serious challenges for the future of autism care in the United States.
