• Mon. Apr 22nd, 2024

Jenny Craig Warns Workers of Mass Layoffs, Bankruptcy Possible

Bynewsmagzines

Apr 28, 2023
Jenny Craig Warns Workers of Mass Layoffs, Bankruptcy Possible

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A leaked memo suggests that weight loss company Jenny Craig may be losing more than pounds.

In the document viewed by NBC News, the company stated that it’s looking to get acquired and “has been going through a sales process for the last couple of months.” Staffers alerted the outlet that whispers of layoffs has been happening for weeks.

“This will likely impact all employees in some manner,” the document stated. “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.”

The note also said that employees will be eligible for severance “based on job level and tenure with the company,” without further elaborating.

According to Bloomberg, Jenny Craig could file for bankruptcy as early as next week, noting that the company currently has around $250 million in debt.

The company said Friday morning that it was looking to shift toward a stronger e-commerce model and shy away from its traditional brick-and-mortar locations — the current Jenny Craig client process relies on customers coming into physical locations to meet with their weight loss coaches.

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The weight loss company is based in Carlsbad, California, and currently operates over 500 locations in the U.S. and Canada, including both franchised and company-owned.

Jenny Craig did not immediately respond to Entrepreneur’s request for comment regarding potential layoffs or an acquisition.

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