Noom confirmed one other spherical of layoffs on the digital weight reduction firm this week, the newest in a spate of workforce reductions at well being tech corporations.
In accordance with reporting by TechCrunch, Noom let go of about 500 employees, or round 10% of its workers, largely affecting its teaching crew.
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 permits us to proceed rising over the long run. We lately made the tough determination to cut back the variety of Noom staff. 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 an enormous $540 million Collection F spherical in 2021. On the time, Bloomberg reported it was valued at $3.7 billion. The corporate mentioned it deliberate to make use of the money to broaden outdoors weight reduction and later launched a stress administration product dubbed Noom Temper.
However Noom has confronted pushback for its weight reduction mannequin, which some have critiqued for too-low calorie suggestions and inadequate help from coaches with excessive caseloads.
Earlier this week, TripAdvisor introduced the rent of Noom CFO Mike Noonan, who will take over for its retiring government on the finish of the month. The corporate can also be searching for a brand new CEO to switch cofounder Saeju Jeong, who’s staying in his function till Noom finds a successor.
Plenty of different digital well being and well being tech corporations have introduced layoffs this 12 months. Linked health large Peloton lately laid off one other 500 employees, 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 shedding 109 employees final month because it shifts focus to launching a brand new well being plan.
