Elemy, the San Francisco-based behavioral health technology startup, announced its fourth round of Elemy layoffs on Thursday, effective immediately. The company declined to disclose the total number of employees affected, but CEO Yury Yakubchyk emphasized that these reductions are part of a strategic pivot: Elemy is moving from a tech-backed autism service provider to a near pure-play software platform for pediatric behavioral health providers and patients.
“The whole point of our business was to move gradually towards a model where we had a software platform that empowered clinicians and families, without maintaining full-time salaried clinicians on our side,” Yakubchyk told Behavioral Health Business. “As more automation gets introduced, we’ve had to part ways with more people.” Among the roles affected, 38 of 40 positions on Elemy’s patient intake team were eliminated, demonstrating the impact of its software efficiencies.
This latest round of Elemy layoffs follows earlier reductions this year as the company continues to align its operations with a software-first model. Unlike other layoffs in the behavioral health space, which are often caused by financial struggles or workforce shortages, Elemy’s approach reflects a deliberate effort to scale its technology while maintaining quality patient care.
From Sprout Therapy to Elemy: Building a Software Platform
Founded in 2019 as Sprout Therapy, Elemy combined in-home Applied Behavior Analysis (ABA) services with the development of proprietary software tools. These tools were designed to streamline patient-provider matching, scheduling, onboarding, quality control, and route management. The ABA program functioned as a live testing ground for the software, allowing the company to optimize features for real-world pediatric behavioral health needs.
Yakubchyk noted that operating the ABA practice required a large administrative staff, which is no longer necessary as Elemy transitions to a technology-driven model. “Looking back, I probably would have used third-party call center teams or field operations teams for clinician and family onboarding,” he said. “As we build more software, we don’t necessarily need as many people in-house doing this work.”
Over 2022, Elemy gradually reduced the staff supporting its ABA operations. Today, the company provides ABA services only in California, Texas, and Florida, reflecting the efficiencies that have prompted these Elemy layoffs.
Expanding Virtual Care Beyond ABA
While ABA remains a core service, Elemy has expanded into other pediatric behavioral health areas, including ADHD. Its platform is designed to improve provider efficiency, enhance patient experiences, and support clinicians in delivering care.
Elemy still employs registered behavior technicians (RBTs) who provide hands-on treatment under board-certified behavior analysts (BCBAs). These RBTs are paired with provider customers, ensuring care delivery without the company needing to manage clinicians full-time. In April, Elemy launched Ecademy, a fully-paid three-month training and certification program for RBTs in California, Texas, and Florida. This program supports quality care while aligning with the company’s software-first approach.
Growth, Funding, and Investor Confidence
Elemy’s transformation has been accompanied by rapid growth and significant venture capital investment. By 2022, it had expanded into 14 states and secured $323 million in funding, including a $219 million Series B round at a $1.2 billion valuation. SoftBank Vision Fund 2 was a leading investor.
Yakubchyk emphasized that Elemy’s ability to demonstrate tangible results—accelerated access to ABA services, improved outcomes, and enhanced provider and patient experiences—was key to attracting investors. Operating its own ABA services allowed the company to test and validate its software in real-world conditions.
Distinguishing Elemy From Other ABA Providers
Several private equity-backed ABA providers have faced workforce challenges, layoffs, and retreat from certain markets due to reimbursement pressures. Yakubchyk noted that Elemy’s story of Elemy layoffs is fundamentally different: “We don’t need as many people thanks to automation. Private equity-backed ABA agencies are not investing in R&D—they focus on cherry-picking insurance partners and providing care exclusively through clinics.”
By contrast, Elemy has prioritized research and software innovation, allowing it to scale without maintaining a large in-house workforce.
Future Outlook: Pediatric Behavioral Health and Beyond
Yakubchyk has expressed interest in eventually expanding Elemy’s software beyond ABA into broader in-home chronic care management. For the next several years, however, the company remains focused on pediatric behavioral health, aiming to build a “very large, lasting, impactful company” while refining its software-first model.
Even as the company reduces staffing, the goal is to remain actively involved in supporting therapists and patients. This approach highlights a key difference from typical Elemy layoffs seen in other behavioral health organizations, where workforce reductions often come without strategic focus on automation or software-driven solutions.
Conclusion
The fourth round of Elemy layoffs underscores the company’s strategic evolution from a tech-backed ABA provider to a software-first pediatric behavioral health platform. By leveraging automation and streamlining operations, Elemy is reducing reliance on in-house clinical and administrative staff while continuing to deliver quality care through RBTs and provider partnerships.
With substantial funding, a growing geographic footprint, and a focus on software innovation, Elemy is positioned to reshape how pediatric behavioral health services are delivered, demonstrating the potential for technology to improve provider efficiency, patient access, and overall care outcomes.
