Noom showed every other spherical of layoffs on the virtual weight reduction corporate this week, the newest in a spate of body of workers discounts at well being tech firms.
In keeping with reporting through TechCrunch, Noom let cross of about 500 employees, or round 10% of its workforce, in large part affecting its training group.
This marks the second one spherical of layoffs on the corporate this 12 months. Insider first reported in April that Noom used to be reducing a few quarter of its coaches as a part of a method trade in its training fashion.
“Noom has skilled unusual enlargement over the last a number of years, and it’s crucial that we’re structured in some way that permits us to proceed rising over the long run. We just lately made the tough resolution to scale back the collection of Noom workers. We’re deeply thankful for his or her contributions to Noom, and we want them persisted luck,” 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 used to be valued at $3.7 billion. The corporate stated it deliberate to make use of the money to extend out of doors weight reduction and later introduced a rigidity control product dubbed Noom Temper.
However Noom has confronted pushback for its weight reduction fashion, which some have critiqued for too-low calorie suggestions and inadequate enhance from coaches with top caseloads.
Previous this week, TripAdvisor introduced the rent of Noom CFO Mike Noonan, who will take over for its retiring govt on the finish of the month. The corporate could also be in search of a brand new CEO to switch cofounder Saeju Jeong, who’s staying in his function till Noom unearths a successor.
Plenty of different virtual well being and well being tech firms have introduced layoffs this 12 months. Attached health large Peloton just lately laid off every other 500 employees, its fourth spherical of discounts this 12 months as the corporate executes a monetary turnaround plan.
COVID-19 checking out and vaccination startup Healing introduced it used to be shedding 109 employees final month because it shifts focal point to launching a brand new well being plan.