Digital weight reduction firm Noom confirms one other spherical of layoffs



Noom confirmed one other spherical of layoffs on the digital weight reduction firm this week, the newest in a spate of workforce reductions at well being tech corporations. In keeping with reporting by TechCrunch, Noom let go of about 500 staff, or round 10% of its workers, largely affecting its teaching group. 

This marks the second spherical of layoffs on the firm this yr. Insider first reported in April that Noom was reducing a couple of quarter of its coaches as a part of a technique change in its teaching mannequin. 

“Noom has skilled extraordinary development over the previous a number of years, and it’s important that we’re structured in a manner that permits us to proceed rising over the long run. We lately made the tough choice to scale back the variety of Noom staff. We’re deeply grateful for his or her contributions to Noom, and we want them continued success,” a Noom spokesperson wrote to MobiHealthNews.

THE LARGER TREND

Based in 2008, Noom raised an enormous $540 million Series F round in 2021. On the time, Bloomberg reported it was valued at $3.7 billion. The corporate mentioned it deliberate to make use of the money to develop exterior weight reduction and later launched a stress-management product dubbed Noom Temper. 

However Noom has confronted pushback for its weight reduction mannequin, which some have critiqued for too-low calorie recommendations and insufficient support from coaches with excessive caseloads.

Earlier this week, TripAdvisor announced the hire of Noom CFO Mike Noonan, who will take over for its retiring govt on the finish of the month. The corporate can be looking for a new CEO to switch cofounder Saeju Jeong, who’s staying in his position till Noom finds a successor.

Various different digital well being and well being tech corporations have introduced layoffs this yr. Linked health big Peloton lately laid off another 500 workers, its fourth spherical of reductions this yr, as the corporate executes a monetary turnaround plan. 

COVID-19 testing and vaccination startup Healing introduced it was laying off 109 workers final month because it shifts focus to launching a brand new well being plan. 

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