Jenny Craig alerted employees to potential layoffs as it begins “winding down physical operations” and hunts for a buyer, according to NBC News. Jenny Craig has nearly 500 weight-loss centers in the United States and Canada. The company, founded in 1983, did not disclose to CNN how many weight loss centers will close or how many employees will be impacted.
It’s the latest sign of major changes in the weight-loss industry, brought on by popular new prescription diabetes drugs such as Wegovy, Ozempic, and Rybelsus. These relatively new drugs work by stimulating the release of insulin, which helps lower blood sugar. They also slow the passage of food through the gut. The FDA approved Ozempic for the management of diabetes in 2017 and Wegovy for weight loss in 2021. Traditional weight-loss companies are scrambling to adjust.