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 have been affected by the newest 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 workers.
In an announcement to MobiHealthNews, a Noom spokesperson stated the corporate had skilled “extraordinary progress” through the previous a number of years, and it was working to make sure it might keep its momentum long-term.
“Because of the robust financial headwinds which can be impacting companies throughout industries, now we have made the tough choice 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 means to proceed to serve Noomers as they work to higher their lives by way of conduct 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 have 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 change 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 basic counsel recently posted on LinkedIn that she had stepped down from her function.
Quite a few digital well being firms have introduced layoffs for the reason that summer time. Well being information analytics startup Innovaccer, one other digital well being unicorn, just lately laid off about 15% of its workforce. Digital care big Teladoc Health and prescription digital therapeutics firm Akili Interactive have additionally just lately introduced layoffs.
