Weight reduction startup Noom confirms extra layoffs

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

The corporate did not specify what number of workers 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 MobiHealthNews, a Noom spokesperson stated the corporate had skilled “extraordinary development” throughout the previous a number of years, and it was working to make sure it might preserve its momentum long-term.

“Because of the powerful financial headwinds which might be impacting companies throughout industries, we’ve got made the tough determination to cut back the variety of Noom workers,” the spokesperson stated in an announcement. “Whereas this was a painful selection, we’re assured in our technique and in our potential to proceed to serve Noomers as they work to raised their lives by way of habits change.”

THE LARGER TREND

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

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

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