Jenny Craig weight loss closing—why? Bankruptcy and layoffs examined 2023

Popular weight reduction service provider Jenny Craig Inc. is reportedly closing some of its weight loss centers. In addition to forewarning employees of mass layoffs, the company is facing industry uncertainty due to the introduction of popular new prescription medicines such as Ozempic and Wegovy.

According to NBC News, the weight loss company has informed its employees of impending redundancies as it transitions to an e-commerce business model. With over 500 weight-loss centers in the United States and Canada, the weight-loss giant is currently seeking a potential acquirer for its assets.

Although it has been verified that some weight-loss centers will shut down in the coming days, the company has not provided an estimate. In addition, it is unknown how many employees will be laid off as a result of the impending closures. However, the company has warned that it could close its California headquarters and New Jersey facility as early as May 5.

A representative of the weight-loss company made the following statement to the press:

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.”

Traditional weight-loss businesses, such as Jenny Craig, are challenged by novel prescription medications.

Jenny Craig, a weight-loss company based in California, offers clients structured weight-loss programs, as do the majority of conventional weight-loss companies. In addition to nutritionally-balanced entrees, desserts, and refreshments, the weight-loss program offers customers nutritionally-balanced menus. These programs are designed to help people lose weight in a healthy way, which includes a healthy balance of weight-loss exercises and dietary changes.

In preparation for the closure of several weight-loss centers, Jenny Craig will lay off a number of employees. According to Bloomberg, the company has approximately $250 million in debt. If all efforts to find a buyer for its assets fail, the company is also contemplating declaring bankruptcy.

The introduction of novel prescription drugs such as Wegovy, Ozempic, and others has caused a significant shift in the weight-loss industry. In recent years, the Food and Drug Administration of the United States has approved new medications that stimulate insulin secretion in the body. This process is known to reduce blood sugar levels and delay food transit through the digestive tract.

Prescription drugs such as Ozempic, which was approved for diabetes by the FDA in 2017 and Wegovy, which will be approved for weight loss in 2021, are among the main factors that have brought about significant changes in the weight loss industry. Ozempic has recently acquired popularity due to celebrities’ use and promotion of the product for weight loss.

However, compared to traditional weight-loss methods offered by companies such as Jenny Craig, prescription medications are accompanied by significant concerns, such as high costs and shortages. These factors frequently make obtaining them more difficult for individuals with diabetes and other weight-related issues.

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