Noom confirmed one other spherical of layoffs on the digital weight reduction firm this week, the most recent in a spate of workforce reductions at well being tech corporations.
In response to reporting by TechCrunch, Noom let go of about 500 employees, or round 10% of its employees, largely affecting its teaching workforce.
This marks the second spherical of layoffs on the firm this 12 months. Insider first reported in April that Noom was slicing a few quarter of its coaches as a part of a technique change in its teaching mannequin.
“Noom has skilled extraordinary progress over the previous a number of years, and it’s important that we’re structured in a means that allows us to proceed rising over the long run. We not too long ago made the tough choice to scale back the variety of Noom workers. 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 a large $540 million Series F round in 2021. On the time, Bloomberg reported it was valued at $3.7 billion. The corporate stated 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 exchange cofounder Saeju Jeong, who’s staying in his function till Noom finds a successor.
Various different digital well being and well being tech corporations have introduced layoffs this 12 months. Linked health large Peloton not too long ago laid off another 500 workers, its fourth spherical of reductions this 12 months 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.
