Mental health startup Brightline lays off 20% of its workforce

Pediatric virtual behavioral health company Brightline announced a second round of layoffs in less than a year, again affecting 20% of its workforce.

The California-based company let go of 20% of its workforce in November, months after announcing an additional $10 million raise, bringing its total Series C funding to $115 million. 

“As we continue to expand our team of therapists, psychiatry providers, coaches and member support agents, including the hiring of a new chief clinical officer, Dr. Myra Altman, to allow us to meet the growing demand across the nation for our services, we have also made the decision to reduce our corporate non-member facing team. This decision was not taken lightly, and although incredibly difficult, it will ultimately allow us to better serve our clients and provide even more families with the mental healthcare support they deserve,” a spokesperson from Brightline told MobiHealthNews in an email. 

THE LARGER TREND

Last month, Brightline announced it was affected by the data breach of its third-party vendor Fortra on its file transfer services. The virtual care provider filed nine notices in April with the Department of Health and Human Services’ Office for Civil Rights, which revealed at least 964,300 individuals have been affected so far.   

Potentially compromised information includes names, member identification, addresses, date of health plan coverage, birthdates and employer names. 

In addition to its $10 million Series C raise in 2022, Brightline received a whopping $105 million in funding. It also launched a virtual coaching program for parents and caregivers with children at risk for or diagnosed with autism spectrum disorder (ASD). 

That raise came less than a year after Brightline announced it brought in $72 million in Series B funding.