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 12 months.
The corporate did not specify what number of staff had been affected by the most recent job cuts. In April, Insider reported that Noom was shedding a couple of quarter of its coaches. It performed one other spherical of cuts within the fall, with TechCrunch reporting it was shedding round 500 staff, or about 10% of its workers.
In an announcement to MobiHealthNews, a Noom spokesperson stated the corporate had skilled “extraordinary development” through the previous a number of years, and it was working to make sure it may preserve its momentum long-term.
“Because of the powerful financial headwinds which can be impacting companies throughout industries, we’ve got made the troublesome determination to cut back the variety of Noom staff,” the spokesperson stated in an announcement. “Whereas this was a painful alternative, we’re assured in our technique and in our means to proceed to serve Noomers as they work to higher their lives by conduct change.”
THE LARGER TREND
Based in 2008, Noom final raised $540 million in Sequence F funding in 2021. Following the increase, Bloomberg reported the burden loss firm was valued at $3.7 billion. It launched a behavioral well being product not lengthy after it introduced its large Sequence F, and it revealed an enterprise providing 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 develop into govt chairman when a successor is known as. The corporate’s CFO, Michael Noonan, left the corporate within the fall to be part of Tripadvisor, whereas Noom’s common counsel not too long ago posted on LinkedIn that she had stepped down from her function.
A variety of digital well being corporations have introduced layoffs because the summer season. Well being knowledge analytics startup Innovaccer, one other digital well being unicorn, not too long ago laid off about 15% of its workforce. Digital care large Teladoc Well being and prescription digital therapeutics firm Akili Interactive have additionally not too long ago introduced layoffs.
