Hazel Health

Summary

Hazel Health has laid off 135 employees, including many clinicians, marking its second round of cuts in four months as the K-12 health care startup struggles with financial sustainability. CEO Iyah Romm said the company is burning cash too quickly, facing slow and strained partnerships, rising price sensitivity in education and health care, and overextension from running multiple initiatives at once. Hazel will abandon its AI project MAIA, merge teams following its acquisition of Little Otter, streamline leadership, and refocus on serving more students efficiently, improving referrals, and ensuring reimbursement for care, while continuing operations across 22 states and more than 6,100 schools.