Jenny Craig, The Popular Weight Loss Company, To Shut Down Its 500 Weight Loss Centers!

Jenny Craig To Shut Down Its Centers

In the wake of the popularity of weight loss drugs, many weight management companies are facing staggering issues. Jenny Craig, one of the largest weight management companies in the world is going to shut down some of its centers due to bankruptcy. 

In a recent FAQ provided to its employees, the company warned about upcoming massive layoffs. It seems, the company is unable to compete with a parallel and growing weight loss drugs industry that is powered by drugs such as Ozempic and Wegovy. Jump into the news to know more.

The Company Warns Of Massive Layoffs In Coming Weeks!

In recent news, Jenny Craig, one of the largest weight management companies has warned the employees of mass layoffs. According to recent reports, the company is beginning to ‘wind down its physical operations’ and is seeking a potential buyer.

Currently, this weight management company has nearly 500 subsidiary centers all over the United States and Canada. The authorities haven’t revealed the exact number of weight loss centers or employees who will be affected by the layoffs.

Jenny Craig Warns Massive Layoffs
Source: Getty Images

According to the spokesperson for Jenny Craig, the company plans to transition towards an e-commerce-driven model. And they have clarified that further plans will be revealed in the coming weeks.

Founded in 1983 by Jenny Craig and her late husband Sidney Craig, the company provides nutritious menus and personalized coaching services to aid in weight loss. Right now, the company has more than 700 weight management centers across the United States, New Zealand, Australia, and Canada.

Reports say that the company has been facing a $250 million debt and is planning to file for bankruptcy and seeking a potential buyer. Now, one of the biggest threats faced by the company is the challenges brought by weight loss drugs.

In 2017, the Food and Drugs Administration approved Ozempic for managing type 2 diabetes and Wegovy in 2021 for weight loss. In this context, the weight loss drugs industry saw an upward spike that might have impacted the weight management companies such as Jenny Craig.

As part of the new policies, the company has sent WARN Act letters to its employees. By WARN Act it means the Worker Adjustment and Retraining Notification Act. According to this, large corporations need to provide prior notice to their employees before mass layoffs or closing down.

In some of these WARN Act letters, Jenny Craig has informed its employees that they are planning to end the bulk of operations in the Carlsbad, California office by June 24. In another letter, it says that the New Jersey facility will also be winding down by June 24 or as early as May 5. 

The FAQ that has been sent by the company to its employees indicates that they don’t have an idea of how many employees will lose their jobs as part of these layoffs. In any case, the company has advised their employees to seek other employment as early as possible.

In 2019. H.I.G Capital, a $55 billion private equity firm had acquired Jenny Craig for an undisclosed amount. As part of this new movement, the company opened new branches and franchises in the United States and Canada.

But on questions regarding the recent layoffs, H.I.G Capital hasn’t responded. Also, many of the employees who are currently working under Jenny Craig have posted ‘Open to Work’ notices on their LinkedIn handles in the past 24 hours. All these changes indicate that the company is moving towards bankruptcy and a massive layoff can be expected as early as possible. 

Also read: Physical Activity Can Successfully Maintain Weight Loss Than Diets, Study Finds!

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