Burlingame, California-based Lyra Health has pruned its administrative and management workforce, joining a handful of behavioral health companies to do so in the waning days of 2024.
Last week, the business-to-business-focused digital mental health company gave staff notice that it would lay off about 2% of its workforce. The total number of employees impacted totaled 77, according to Fierce Healthcare.
“We made these changes to better support our customers, providers, and clients as Lyra grows in our evolving market,” a representative of Lyra Health told Behavioral Health Business. The layoffs did not impact clinicians engaged in patient care, they added.
The company declined to answer specific questions. It’s not clear what forces prompted the layoffs.
Lyra Health is one of the best-financed mental health startups coming out of the post-pandemic virtual health care boom. The company has raised about $910 million in venture funding, according to Crunchbase.
Recently, Behavioral Health Business has tracked other layoffs in both the digital and brick-and-mortar spaces.
Most recently, the Phoenix-based youth behavioral health provider Embark Behavioral Health laid off about 60 people in administrative and management roles.
In October, digital therapy enablement platform Alma laid off 9% of its staff, while Brightline, a digital pediatric behavioral health provider, shut down most of its digital services as part of a pivot to a hybrid of in-person and telehealth services for youth and families.
These came in the context of other health care companies laying off staff. However, recent data show that most of the behavioral health layoffs echo the beats of the wider economy, where most layoffs are happening in the technology sector.