One of the world’s most successful weight loss programs will soon be shutting a large portion of its doors and they’re blaming Big Pharma. CNN reported that the company is “warning employees of mass layoffs amid upheaval in the industry from popular new prescription drugs like Ozempic.
Jenny Craig alerted employees to potential layoffs as it begins “winding down physical operations” and hunts for a buyer, according to NBC News. Jenny Craig has nearly 500 weight-loss centers in the United States and Canada.
The company, founded in 1983, did not disclose to CNN how many weight loss centers will close or how many employees will be impacted.
“Like many other companies, we’re currently transitioning from a brick-and-mortar retail business to a customer-friendly, e-commerce driven model. We will have more details to share in the coming weeks as our plans are solidified,” a spokesperson for Jenny Craig said in a statement to CNN.”
As a growing number of overweight Americans have been using medications for diabetes like Ozempic and Wegovy for weight loss. The Associated Press wrote just last week that the drugs will “upend” weight loss care.
Founded in Australia in 1983, Jenny Craig has helped millions lose weight and live a healthy lifestyle. Its stated mission is to help people achieve their weight loss goals in a safe and healthy manner through personalized meal plans, coaching, and support. The company has locations in the United States, Canada, and New Zealand.
Jenny Craig’s program is based on a three-pronged approach: food, body, and mind. The food component includes portion-controlled meals and snacks that are designed to satisfy cravings while still promoting weight loss.
The body component promotes regular exercise that is customized to fit the individual’s fitness level and goals.
The mind component includes coaching and support to help people overcome emotional eating and develop healthier habits. The success of the company has come from the program’s ability to design a customizable plan to fit each individual’s lifestyle and preferences.
The company is required to issue FAQ warnings to employees who could be impacted by mass layoffs. A statement read, “While we had to issue Warn Notices specifically for sites where we had more than 50 people potentially impacted, this will likely impact all employees in some manner.
“We do not know the exact employees/groups whom will be impacted, and if any employees may be retained. As a result, we would suggest that you anticipate that your employment may be impacted and begin to seek other employment.”
NBC News explained that “the federal WARN Act generally requires employers with at least 100 staffers to give workers 60 days’ notice of potential mass layoffs or worksite closures.
It couldn’t be determined how many employees received the FAQ document.
On Friday morning, after NBC News reported on the layoff warnings, a Jenny Craig spokesperson said that the company ‘is embarking on the next phase of our business to evolve with the changing landscape of today’s consumers. Like many other companies, we’re currently transitioning from a brick-and-mortar retail business to a customer-friendly, e-commerce driven model. We will have more details to share in the coming weeks as our plans are solidified.’”