Cerebral Inc., a San Francisco–based digital mental health startup, has confirmed another major round of job cuts that will affect just over 1,000 employees. The news of Cerebral layoffs 2025 marks the company’s second large-scale reduction in workforce this year and comes as it continues to face regulatory investigations, financial pressures, and scrutiny around its prescribing practices.
In a memo to employees, CEO David Mou explained that the cuts will impact operations, support, and clinical care divisions. While the decision was described as difficult, Mou emphasized that Cerebral layoffs 2025 are necessary to stabilize the company and ensure that patients continue receiving quality mental health care during challenging economic times.
Coaching and Counseling Programs Take the Biggest Hit
Sources close to the company revealed that the care counseling and coaching department will be hit hardest by Cerebral layoffs 2025. Approximately 400 of the 500 employees in that division will lose their jobs, highlighting the company’s shift away from coaching programs, which it had already begun phasing out earlier this year.
Prior to these cuts, Cerebral employed about 5,500 people. With Cerebral layoffs 2025, the company will significantly reduce its headcount, reflecting a broader restructuring effort aimed at increasing efficiency and realigning services.
A Push for Operational Efficiency
In addition to workforce reductions, Cerebral layoffs 2025 are part of a larger push for operational efficiency. The company announced it will:
- Shrink clinician teams to better align with patient demand
- Scale back non-core programs
- Invest more in complex case managers
- Increase reliance on technology for support functions
- Reallocate marketing spend toward clinical quality and compliance
These changes come at a time when Cerebral is under pressure to balance patient trust, financial stability, and regulatory compliance.
From Rapid Growth to Intense Scrutiny
Cerebral was founded in 2019 and quickly became one of the most heavily funded mental health startups, raising $462 million and reaching a $4.8 billion valuation. However, the company’s explosive growth drew attention to its prescribing practices, especially regarding controlled substances like Adderall. The controversies led to multiple investigations by the DOJ and DEA, as well as partnerships with several retail pharmacies being severed.
The announcement of Cerebral layoffs 2025 marks a clear turning point for the company, signaling a move away from its previous growth-at-all-costs strategy. Instead, the focus now lies in restructuring operations and addressing compliance issues to ensure long-term viability.
Leadership Changes and Patient Safety
Since taking over from founding CEO Kyle Robertson, David Mou has prioritized safety and compliance. In light of Cerebral layoffs 2025, Mou has reiterated that these changes will help support new investments in crisis identification systems, clinical oversight, and patient protections.
High-profile incidents, including reports of the company treating minors without parental consent, have raised further concerns. These events underscore why Cerebral is emphasizing clinical quality and scaling back services that are not essential to its mission.
The Future of Cerebral
The broader digital mental health industry is also under pressure, as companies face tougher regulatory oversight and economic challenges. For Cerebral, the Cerebral layoffs 2025 represent both a setback and an opportunity — a chance to streamline operations while rebuilding trust with patients, employees, and regulators.
How the company navigates this transitional period will shape its future role in the mental health care landscape. Whether the restructuring and the Cerebral layoffs 2025 will be enough to restore stability and credibility remains to be seen.
