Prognosis

Cerebral Changes Severance Terms for Some in 350-Person Layoff

Troubled mental health company is replacing some staff with contractors

The Cerebral Inc. App on an iPhone

Source: Cerebral Inc.
Lock
This article is for subscribers only.

Cerebral Inc., the troubled mental telehealth startup, reversed plans to make soon-to-be-fired workers stay in their jobs for two months in order to qualify for severance, according to people familiar with the cuts.

The company has been eliminating staff and changing its business model after an investigation by Bloomberg revealed that former workers were concerned the company was overprescribing controlled substances such as Adderall. Cerebral is under investigation by federal authorities, has parted ways with its founding CEO, and has stopped prescribing some drugs.