Jenny Craig lays off staff as it plans to close physical weight loss centers

Weight-loss business Jenny Craig is overhauling its business model four decades after the diet program first launched. The company plans to close its 600 centers across the U.S. and revamp itself as an e-commerce player, NBC News first reported. 

“2023 marks the 40th anniversary since Jenny Craig started changing people’s lives with her iconic meals and weight loss plans,” Mandy Dowson, CEO and president of Jenny Craig, said in a statement to CBS MoneyWatch. “Now, Jenny Craig is embarking on the next phase of our business to evolve with the changing landscape of today’s consumers. Like many other companies, we’re currently transitioning from a brick-and-mortar retail business to a customer-friendly, e-commerce driven model.”

More details will be provided in the coming weeks, Dowson added. 

Some staffers at the centers will also be laid off as Jenny Craig looks for a buyer, the company told employees in a memo obtained by NBC. 

Jenny Craig’s facilities allowed members to meet with dieting coaches and counselors. The company also provides one-on-one support over the phone and via video chat through Jenny Craig Anywhere, and ships meals directly to customers’ homes.

While it’s unclear how many workers will lose their jobs, Jenny Craig instructed staff members to “anticipate that your employment may be impacted and begin to seek other employment,” according to the memo, NBC News reported.

Under the federal Worker Adjustment and Retraining Notification (WARN) Act, businesses with at least 100 workers in the U.S. must give employees at least 60 days’ notice in a mass layoff.

In 2019, Carlsbad, California-based Jenny Craig was acquired by private equity firm H.I.G. Capital for an undisclosed sum. 

Broadcasting on LinkedIn

Layoffs appear to have already hit workers, who are using professional networking site LinkedIn to broadcast their professional availability in hopes of finding new work. 

“After more than 17 years with Jenny Craig, my time has come to an end. I have never been laid off, fired or quit a job without a job. This is new territory for me,” Amy White, a Jenny Craig field support manager, wrote on the platform Friday. “We are all seeking new opportunities and I am asking my network to help us,” she said of her team. 

She tagged eight additional employees who had also presumably been laid off. Another Jenny Craig employee, Eric Matson, the company’s senior director of enterprise applications, marked himself as “Open to work,” a site label that lets companies know who is looking for a job.

He said his job loss was part of the company’s dramatic workforce reduction. 

“Hi everyone — after 17 years in ever-expanding roles at Jenny Craig the company is dramatically downsizing. I am looking at new opportunities and would appreciate your support. Thank you in advance for any connections, advice, or referrals you can offer,” he wrote.