Noom

Health tech startup Noom conducted another round of layoffs on January 30, 2024, affecting employees including coaches and engineers. This follows a series of workforce reductions in recent years as the company, which operates a popular weight loss app, continues to restructure and streamline its operations. While the exact number of employees impacted in this latest round was not disclosed, the cuts are part of a broader trend of the company leaning more into operational efficiency. Noom operates in the competitive digital health and wellness industry.

Digital weight loss and behavioral health company Noom confirmed a new round of layoffs in January 2023, marking its third workforce reduction in less than a year. While the exact number for this latest cut was not disclosed, previous rounds were significant, including a layoff of about 500 employees, or 10% of its staff, in the fall of 2022. The company, which was valued at $3.7 billion in 2021, cited tough economic headwinds as the reason, stating it needed to ensure long-term momentum after a period of extraordinary growth. This series of layoffs coincides with broader challenges in the digital health sector and internal shifts, including a search for a new CEO.

In October 2022, health tech startup Noom conducted its second round of layoffs in a matter of months, cutting approximately 500 employees, which represented about 10% of its total staff. This reduction primarily impacted the company's coaching team, bringing the number of coaches down to around 1,000, nearly half of what it was at the start of the year. The layoffs occurred amid the departure of the company's CFO and were framed by the company as a restructuring effort to ensure long-term growth, despite Noom having achieved $400 million in revenue in 2020 and being valued at $3.7 billion the previous year. This move signaled a strategic shift away from its core emphasis on personalized coaching services.

Noom, the weight loss and wellness app, is laying off a significant portion of its coaching staff as part of a strategic shift. The company is letting go of approximately 495 coaches in total, with 180 already departed and 315 more expected soon. This restructuring is due to a move from text-based chat support to a scheduled video call system, which reduces the need for a large, on-demand workforce. The layoffs come after a period of rapid growth and substantial venture funding during the pandemic. Remaining employees are expected to handle increased workloads. The company, which operates in the health tech industry, has faced criticism regarding its dietary recommendations and advertising practices even as it expanded into mental health coaching.