Laid off from Carbon Health.
Carbon Health's layoffs began with the programs it gave up, then moved into the clinics as it said it was matching staff to post-COVID demand. Those cuts didn't head off bankruptcy in 2026, and the plan that followed canceled the stock and options its people held.
What we know about Carbon Health severance and layoffs
- 250 people, or 8% of the workforce, laid off in June 2022
- 226 jobs on the January 2023 California notice
- 199 jobs at 52 California addresses on notices effective October 9, 2023
- 56 medical jobs at 16 California addresses on notices effective March 12, 2024
- About 1,400 employees at the 2026 filing, down from more than 2,000 at peak
- About 93 clinics left by the 2026 filing, from more than 125 in 2023
- About $80,000 in severance unpaid at the February 2026 Chapter 11 filing
The most recent Carbon Health layoff we've found
Carbon Health's Chapter 11 plan took effect June 15, 2026, after the court confirmed it May 29, Kroll's case page says. It moved majority ownership to a lender group led by Future Solution Investments, according to Pachulski Stang Ziehl & Jones, which represented the company.
What Carbon Health layoffs have meant for employees
Most addresses on California's October 2023 list show a handful of jobs each, so that round is easy to miss if you're looking for one big number. Nine of the 16 addresses on the January 2024 notice match that list character for character, including San Rafael, which went from three jobs to 10, and a Long Beach site on South Street, which went from three to six. If your clinic was one of those nine, the two notices carried effective dates about five months apart. Every row on both notices is typed a layoff, none a closure, which points to staff cuts at sites that weren't listed as closing. Carbon Health told the San Francisco Chronicle its 2024 cuts were made "in specific locations," and the paper put 10 of those jobs in San Rafael, seven in San Francisco and the rest in Southern California. A clinic's own lines are there to look up, because California's WARN report runs address by address. The October 2023 round shows up as 50 California employees in the Chronicle's 2024 story, well below the count in the state's report.
Once the case began, severance became a string of decisions. Carbon Health sought court authority to keep paying it "in their discretion," the February 2026 wages motion shows, and severance was about $80,000 of the $3,863,000 in pre-filing pay and benefits it covered. Another proposal covered 43 people, whose incentive and retention pay would replace any expectation of severance, a retention plan motion says. A separate February call took up providers' severance at clinics planned for closure, Alvarez & Marsal's time records show. The motion speaks of "certain" employees and "eligible" ones, so it describes a practice that didn't cover everyone. If severance comes up, salary, title and length of service are the factors it gave for past payments, which makes them history and not an entitlement. There's more on negotiating severance.
April 2, 2026 was the general bar date for claims, Kroll's case page says, and it also lists a proof of claim form and questions and answers for employees. Carbon Health said in the wages motion it wouldn't pay any individual more than $17,150 for unpaid pre-filing wages, commissions, incentives and benefit contributions, with three proposed exceptions. One was a recently terminated employee owed $22,966 in paid time off, which the company said non-bankruptcy law required it to pay. It put unpaid time off at about $111,000 across the company. What the plan projected for a claim depended on its class. Projections ran to 100% for priority non-tax claims and 8% to 10% for commercial unsecured claims in the confirmed Chapter 11 plan, with $4.55 million of a $12 million trust going to the commercial group and the trustee handling objections to those claims. Its class table doesn't place any worker's claim in either one.
The company came out of the case with new majority owners. The plan provided for about $33 million in new capital and a $100 million debt-for-equity exchange, Pachulski Stang Ziehl & Jones reported in May 2026, adding that Future Solution Investments, which leads the lender group, had expressed its intention to turn Carbon Health into "an AI-driven healthcare system." If you work there now, the severance practice in the motion is a description of the past, and the plan assumed employment arrangements "as may be amended." California's four notices cover one state, while the company had clinics in eight states at the filing and staff in 21. You can look up California unemployment benefits or benefits in other states.
A sourced history of Carbon Health layoffs
February 2026, Chapter 11 filing and planned clinic closures
Carbon Health filed Chapter 11 on February 2, Kroll's case page says, and its CEO said it would be "business as usual" during the restructuring, per Fierce Healthcare. Alvarez & Marsal's time records show a February 13 call on severance for providers at clinics "planned on being closed."
March 2024, fourth layoff round in medical jobs
Physicians, medical assistants and nurses were among 56 medical jobs in what the San Francisco Chronicle called the fourth round since 2022. The company said it was aligning "clinical staffing to post COVID-19 demand levels" in specific locations.
October 2023, 199 jobs listed at 52 California addresses
California's WARN report labels every row a permanent layoff, across 14 counties, on notices dated August 10 and effective October 9. The largest line is 18 jobs in Campbell, and 43 addresses list five or fewer.
January 2023, more than 200 cut as programs unwind
CEO Eren Bali said the company was unwinding public health, remote patient monitoring, hardware and chronic care programs, the San Francisco Chronicle reported. The state notice ran from directors and the chief technology officer to janitors, recruiters and salespeople.
June 2022, 250 cut as COVID lines wind down
Carbon Health was winding down COVID business lines and shifting toward profitability, TechCrunch reported, and it offered separation packages with extended healthcare coverage, removed equity cliffs for options and outplacement support. California's notice listed 131 jobs.
What to do if you're laid off from Carbon Health
- File for unemployment in the state where you worked. Benefits run from your filing date, and severance usually doesn't block you. Carbon Health's biggest hubs: California. Somewhere else? Every state is here.
- Apply for financial and hardship assistance. Unemployment supplements income, but food benefits, health coverage and utility help are often available as well. Here's some of what Carbon Health's hub states run: California, and every other state is here.
- Mind the health insurance window. Losing coverage opens a 60-day special enrollment period, and an ACA plan usually beats unsubsidized COBRA. Compare your options before the employer coverage lapses, and read how the COBRA clocks run if you are weighing it seriously.
- Get your real runway number. Severance plus savings divided by reality. The calculator takes five minutes.
- Know which clocks are already running. Severance review windows, COBRA election, visa grace periods, and 401(k) rollovers all run on federal deadlines that started at termination. All five deadlines are here.
Carbon Health layoff and severance questions
What severance has Carbon Health given laid-off employees?
Carbon Health told the bankruptcy court in a February 2026 wages motion that it had historically paid severance to certain employees let go without cause, generally in cash set by salary, job title and length of service, with about $80,000 unpaid at filing. Its retention plan motion said such pay could rest on contract terms or an "informal prepetition practice." In June 2022, TechCrunch reported packages offering extended health coverage and outplacement support.
What happens to my stock if I'm laid off from Carbon Health?
Stock options, restricted stock units and other equity awards granted before the plan's effective date were deemed canceled under the confirmed Chapter 11 plan, for former employees as well as current ones, and it projected 0% for equity interests. That date was June 15, 2026, Kroll's case page says.
How many people has Carbon Health laid off?
California's reports add up to 612 jobs across four rounds of notices from 2022 to 2024, our own sum, which counts jobs listed in one state. That's 131 jobs in June 2022, 226 in January 2023 and, in California's WARN report, 199 in October 2023 and 56 in March 2024. Company-wide, TechCrunch reported 250 people in June 2022, the San Francisco Chronicle quoted "more than 200" in January 2023, and Alvarez & Marsal's time records refer to "2024 and 2025 reductions."
Why did Carbon Health file for bankruptcy?
Pandemic demand faded and capital tightened from 2022, and workforce reductions, clinic closures and dropped service lines didn't end the cash squeeze, the confirmed Chapter 11 plan says. It points to operating losses and limited financing, and it says Silicon Valley Bank froze about $1.9 million in January 2026 under a former landlord's writ.
Which Carbon Health clinics closed in the bankruptcy?
Clinic closures are among the cost cuts from 2022 on in the confirmed Chapter 11 plan, and Alvarez & Marsal's time records show more being planned in February 2026. Those entries don't name the clinics.
What happens to my Carbon Health 401(k) after a layoff?
If you held a balance in Carbon Health's 401(k), the February 2026 wages motion said the plan "immediately vests at a rate of 100 percent," and about 1,300 former employees held balances at the time. It also said accounts under $7,000 were being transferred to a third-party administrator, so a small balance may have gone there, though the filing doesn't say whether that process finished. There's more on a 401(k) when a job ends.