Weight loss startup Noom confirms more layoffs

Weight loss startup Noom confirms more layoffs

Noom confirmed it had performed one other workforce discount, marking the third spherical of layoffs on the digital weight loss firm in lower than a 12 months.

The firm did not specify what number of staff had been affected by the most recent job cuts. In April, Insider reported that Noom was laying off about a quarter of its coaches. It performed one other spherical of cuts within the fall, with TechCrunch reporting it was laying off around 500 workers, or about 10% of its employees. 

In an announcement to MobiHealthInformation, a Noom spokesperson mentioned the corporate had skilled “extraordinary progress” in the course of the previous a number of years, and it was working to make sure it might keep its momentum long-term.

“As a results of the robust financial headwinds which are impacting companies throughout industries, we’ve made the troublesome resolution to scale back the variety of Noom staff,” the spokesperson mentioned in an announcement. “While this was a painful selection, we’re assured in our technique and in our means to proceed to serve Noomers as they work to higher their lives by way of habits change.”

THE LARGER TREND

Founded in 2008, Noom final raised $540 million in Series F funding in 2021. Following the increase, Bloomberg reported the load loss firm was valued at $3.7 billion. It launched a behavioral health product not lengthy after it introduced its large Series F, and it revealed an enterprise offering for employers late final 12 months. 

In 2022, Noom settled a lawsuit that alleged it had misled customers into signing up for subscriptions that had been troublesome to cancel. In October, Bloomberg reported Noom had begun looking for a brand new CEO to exchange cofounder Saeju Jeong, who will turn out to be government chairman when a successor is known as. The firm’s CFO, Michael Noonan, left the corporate within the fall to join Tripadvisor, whereas Noom’s common counsel recently posted on LinkedIn that she had stepped down from her function. 

Various digital well being firms have introduced layoffs because the summer season. Health knowledge analytics startup Innovaccer, one other digital well being unicorn, just lately laid off about 15% of its workforce. Virtual care large Teladoc Health and prescription digital therapeutics firm Akili Interactive have additionally just lately introduced layoffs.