Weight loss startup Noom confirms more layoffs (2024)

Noom confirmed it had conducted another workforce reduction, marking the third round of layoffs at the digital weight loss company in less than a year.

The company didn't specify how many employees were affected by the latest job cuts. In April, Insider reported that Noom was laying off about a quarter of its coaches. It conducted another round of cuts in the fall, with TechCrunch reporting it was laying off around 500 workers, or about 10% of its staff.

In a statement to MobiHealthNews, a Noom spokesperson said the company had experienced "extraordinary growth" during the past several years, and it was working to ensure it could maintain its momentum long-term.

"As a result of the tough economic headwinds that are impacting businesses across industries, we have made the difficult decision to reduce the number of Noom employees," the spokesperson said in a statement. "While this was a painful choice, we are confident in our strategy and in our ability to continue to serve Noomers as they work to better their lives through behavior change."

THE LARGER TREND

Founded in 2008, Noom last raised $540 million in Series F funding in 2021. Following the raise, Bloomberg reported the weight loss company was valued at $3.7 billion. It launched a behavioral health product not long after it announced its massive Series F, and it revealed an enterprise offering for employers late last year.

In 2022, Noom settled a lawsuit that alleged it had misled users into signing up for subscriptions that were difficult to cancel. In October, Bloomberg reported Noom had begun searching for a new CEO to replace cofounder Saeju Jeong, who will become executive chairman when a successor is named.The company's CFO, Michael Noonan,left the company in the fall to join Tripadvisor, while Noom's general counsel recently posted on LinkedIn that she had stepped down from her role.

A number of digital health companies have announced layoffs since the summer. Health data analytics startup Innovaccer, another digital health unicorn, recently laid off about 15% of its workforce. Virtual care giant Teladoc Health and prescription digital therapeutics company Akili Interactive have also recently announced layoffs.

Weight loss startup Noom confirms more layoffs (2024)

FAQs

Weight loss startup Noom confirms more layoffs? ›

The latest reductions mark the third round of job cuts at the company in less than a year. Noom confirmed it had conducted another workforce reduction, marking the third round of layoffs at the digital weight loss company in less than a year.

Why is Noom laying off employees? ›

In a statement, a Noom spokesperson confirmed there were job cuts at the company, saying, “As part of Noom's continuing efforts to build a more efficient company focused on meeting the evolving needs of our customers, we made the difficult decision to reduce a portion of our workforce.

What is the Noom controversy? ›

The Noom controversy is that its app has triggered disordered eating in some users because of its focus on a calorie-restricted diet, food tracking, and regular weighing. Although it markets itself as an anti-diet weight loss solution, many people believe it encourages the same behaviors as traditional diets.

How is Noom doing financially? ›

Noom has raised $627.8M over 14 rounds. Noom's latest funding round was a Series F for $540M on May 24, 2021. Noom's latest post-money valuation is from May 2021. Sign up for a free demo to see Noom's valuations in May 2021 and more.

What are the complaints about Noom? ›

In addition to the auto-renewal and billing complaints, Noom faced criticism from experts and consumers for its weight loss program. While branding itself as different from other diets, the app has previously set very low calorie goals that dietitians say put users at risk of side effects.

What is going on with Noom? ›

In 2022, Noom settled a lawsuit that alleged it had misled users into signing up for subscriptions that were difficult to cancel. In October, Bloomberg reported Noom had begun searching for a new CEO to replace cofounder Saeju Jeong, who will become executive chairman when a successor is named.

Why is there a class action lawsuit against Noom? ›

But in reality, Noom intentionally created a difficult cancellation process, so users who were unable to withdraw in time were instantly back charged for months of service. This “automatic enrollment trap” led to more than 1,000 complaints with the Better Business Bureau and ultimately the lawsuit. See Third Am. Compl.

What is the downside of Noom? ›

“Despite its potential benefits, Noom's cost can be a disadvantage to some, as the program requires a subscription fee,” Costa says. “The app's focus on weight loss, calorie counting, and color-coding foods can perpetuate a restrictive mindset, potentially triggering disordered eating behaviors.

What is the gimmick with Noom? ›

Noom's diet recommendations are restrictive and hierarchical in a way that promotes disordered eating. When a user downloads Noom's app, it onboards them by asking them how much weight they want to lose and how fast they want to lose it.

What do doctors say about Noom? ›

However, while Noom can serve you in the short term by helping you change your eating habits and practice mindful eating, some experts recommend against using weight-loss apps like Noom. "A strict diet protocol, or labeling foods in any way, isn't a healthy practice.

Do people actually lose weight with Noom? ›

While research on Noom's effectiveness is limited, one 2016 study involving nearly 36,000 Noom users found that 78% experienced weight loss while using the app for an average of 9 months, with 23% experiencing more than a 10% loss compared with their starting weight.

Did Noom fire coaches? ›

Weight-loss app Noom, known for its psychology-based approach to dieting which is oft the subject of controversy, is downsizing. The $3.7 billion platform laid off 180 coaches on Thursday in what was described as "an evolution to the coaching model," per Business Insider.

Does Noom prescribe Ozempic? ›

If you're still figuring out your weight journey, Noom Med can help you determine if Ozempic is right for you. If you qualify, you will be paired with a clinician who will speak to you about your goals, health, and all treatment options, including Ozempic.

How did Kelly Clarkson lose weight? ›

Kelly said she changed her diet.

“I eat a healthy mix,” she said. “I dropped weight because I've been listening to my doctor—a couple years I didn't. And 90 percent of the time I'm really good at it because a protein diet is good for me anyway. I'm a Texas girl, so I like meat—sorry, vegetarians in the world!”

Is Noom worth it in 2024? ›

It's one of the few programs we found with a psychology-based approach, encouraging behavioral changes and focusing on nutrition and weight management education. Noom's psychological and educational strategy helps you gain knowledge to build and sustain healthier habits.

Why am I not losing weight with Noom? ›

Just like most weight loss programs, Noom relies on calorie counting, which often fails to sustain results long-term. When calories are restricted, the body's metabolism slows down as a natural response to conserve energy.

What people are saying about Noom? ›

Many people complain that the coaching is inconsistent (and some say practically non-existent) and that the responses feel canned. People also complain that the database lacks many foods, is unreliable, and that tracking food on this plan is a big pain.

Is Noom a good company to work for? ›

Employees rate Noom 2.7 out of 5 stars based on 1,228 anonymous reviews on Glassdoor. In 2020, Noom employees have voted their company to be one of Glassdoor's Best Places to Work.

Are the Noom coaches real people? ›

Noom health coaches are trained through a program called Noomiversity. This program is over 75 hours long and provides an education in health and wellness. The program aims to provide coaches with the needed skills to guide people of diverse backgrounds and experiences.

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