Report: Jenny Craig considering closing weight-loss centers; sends memo about layoffs

Jenny Craig is warning employees that layoffs are coming in the wake of shutting down some of its weight-loss centers, according to NBC News.

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The company is looking for a buyer for its nearly 500 weight-loss centers in the United States and Canada, according to the network.

The company did not verify how many weight loss centers could close, according to CNN.

A document titled “Jenny Craig Company Transition FAQs” provided to NBC News said the company did not yet know the exact number of employees who would be impacted by the move.

“While we had to issue Warn Notices specifically for sites where we had more than 50 people potentially impacted, this will likely impact all employees in some manner. 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 of a mass layoff.

“We do not know the exact employees/groups whom will be impacted, and if any employees may be retained. As a result, we would suggest that you anticipate that your employment may be impacted and begin to seek other employment,” it said.

Jenny Craig offers structured programs to help members lose weight, including fresh meals delivered to customers.

A statement from a spokesperson said the move was coming as the company transitions to a more “e-commerce driven model.”

“Like many other companies, we’re currently transitioning from a brick-and-mortar retail business to a customer-friendly, e-commerce-driven model. We will have more details to share in the coming weeks as our plans are solidified,” a spokesperson for Jenny Craig said in a statement to CNN.

The company has roughly $250 million of debt and is considering a bankruptcy filing if efforts to find a buyer for its assets fail, Bloomberg reported.

Some are pointing to prescription diabetes drugs such as Wegovy, Ozempic, and Rybelsus that are being prescribed for weight loss as a leading factor in the downturn in business in weight-loss companies.