Hazel Health, a San Francisco-based pediatric behavioral health provider, has laid off about 11 percent of its staff. The company partners with schools in nearly 20 states to deliver virtual therapy for students and said the layoffs are part of a restructuring to support long-term growth while integrating AI and automation tools.
The company emphasized that no clinicians were affected by the cuts. Hazel said the move will help it maintain efficient and sustainable care delivery as it continues expanding services for students, families, and schools.
Hazel Health has pursued high-profile partnerships in recent years, including a 2023 deal with Los Angeles County to expand behavioral health services for 1.3 million children and a 2024 partnership with UnitedHealthcare to help cover the cost of school-based mental health programs. The company has also attracted significant investment, raising $51.5 million in 2022 and another $34.5 million earlier in 2025.