noom confirmed that it had carried out another downsizing, marking the third round of layoffs at the digital weight-loss company in less than a year.
The company did not specify how many employees were affected by the latest job cuts. In April, Well-informed person reported that Noom was laying off a quarter of its trainers. He carried out another round of cuts in the fall, with TechCrunch reporting that it was laying off around 500 workers, or around 10% of its staff.
In a statement to MobiHealthNewsA Noom spokesperson said the company had experienced “extraordinary growth” over the past few years and was working to ensure it could maintain its momentum over the long term.
“As a result of the tough economic hurdles that are affecting businesses across all industries, we have made the difficult decision to reduce the number of Noom employees,” the spokesperson said in a statement. “While this was a painful choice, we are confident in our strategy and our ability to continue to serve noomers as they work to improve their lives through behavior change.”
THE BIGGEST TREND
Founded in 2008, Noom passed raised $540 million in Series F funding in 2021. Following the increase, Bloomberg reported that the weight loss company was valued at $3.7 billion. It launched a behavioral health product shortly after announcing its massive F-Series, and unveiled a business offering for employers late last year.
In 2022, Noom settled a lawsuit alleging it had tricked users into signing up for subscriptions that were difficult to cancel. In October, Bloomberg reported that Noom had begun searching for a new CEO to replace co-founder Saeju Jeong, who will become CEO when a successor is named. The company’s chief financial officer, Michael Noonan, left the company in the fall to join Tripadvisor, while Noom’s general counsel recently posted on LinkedIn that he had left his position.
Several digital health companies have announced layoffs since the summer. Health data analytics startup Innovaccer, another digital health unicorn, recently laid off around 15% of its workforce. Virtual care giant Teladoc Health and prescription digital therapy company Akili Interactive have also recently announced layoffs.
