Digital weight reduction firm Noom confirms one other spherical of layoffs

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.

Based on reporting by TechCrunch, Noom let go of about 500 staff, or round 10% of its employees, largely affecting its teaching group. 

This marks the second spherical of layoffs on the firm this yr. Insider first reported in April that Noom was chopping a few quarter of its coaches as a part of a method 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 manner that allows us to proceed rising over the long run. We lately made the tough choice to scale 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 a large $540 million Sequence 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 develop exterior 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 in search of a brand new CEO to exchange cofounder Saeju Jeong, who’s staying in his position till Noom finds a successor. 

Quite a few different digital well being and well being tech corporations have introduced layoffs this yr. Related health large Peloton lately laid off one other 500 staff, its fourth spherical of reductions this yr as the corporate executes a monetary turnaround plan. 

COVID-19 testing and vaccination startup Healing introduced it was shedding 109 staff final month because it shifts focus to launching a brand new well being plan.