Weight-loss large Jenny Craig may shut its company workplaces as early as Friday as a part of a possible transition to an e-commerce enterprise, ABC Information has realized.
In WARN Act letters the corporate despatched to staff and obtained by ABC Information, Jenny Craig knowledgeable staff that she plans to shut the corporate’s Carlsbad, California location the place the corporate’s workplaces are positioned and “most of operations” on the facility on or about June 24, however wrote that the power closed as early as June 5.
In one other WARN Act letter obtained by ABC Information, the corporate stated it intends to shut its New Jersey facility on or about July 24, however presumably as early as Might 5.
The Employee Adjustment and Retraining Notification (WARN) Act requires giant corporations to inform their employees of plant closures or mass layoffs.
In a FAQ despatched to staff on Tuesday and obtained by ABC Information, Jenny Craig stated she is starting “the method of dealing with bodily operations, seemingly transitioning to an e-commerce mannequin.”
“We have no idea the precise staff/teams that can be affected and whether or not staff might be retained,” the FAQ tells staff. “Because of this, we might recommend that you just anticipate that your employment could also be affected and start to hunt different employment.”
The corporate has about 600 facilities worldwide with practically 500 company-owned and franchised areas within the US and Canada, Jenny Craig stated in a press launch earlier this 12 months.
Firm-wide FAQs included hyperlinks to unemployment sources for 39 states and Canada.
A Jenny Craig spokesperson didn’t instantly reply to a request for remark.
Corporations, principally within the tech and media sectors, have laid off 1000’s of staff up to now this 12 months.
Amazon introduced in early January that it will lower a complete of 18,000 jobs, together with layoffs introduced in November 2022. The corporate introduced final month that it will lay off one other 9,000 staff.
Funds firm PayPal is chopping 7% of its workforce, equal to about 2,000 staff, President and CEO Dan Schulman stated Jan. 31.
E-commerce firm eBay stated in an SEC submitting on Feb. 7 that it’s shedding 500 staff, or 4% of its workforce.
Jenny Craig has $250 million in debt and is on the lookout for a purchaser, Bloomberg Legislation reported in March.
The burden loss trade goes by modifications because the anti-obesity drug enterprise has exploded in recognition.
The U.S. Meals and Drug Administration has accepted Ozempic, also referred to as Semaglutide, to deal with sort 2 diabetes alongside eating regimen and train when different medicine aren’t ok at controlling blood sugar ranges.
Though Ozempic isn’t particularly accepted for persistent weight administration, it may be prescribed off-label and used safely for overweight people.
WW, previously often called Weight Watchers, introduced final month that it had acquired Sequence, a subscription-based telehealth platform that provides telemedicine appointments with medical doctors who can prescribe Ozempic and Wegovy, the same drug however at a better dose.
The medicine, which mimic the physique’s hormones to help in weight reduction, have not too long ago gained recognition because of reported use by celebrities and posts by on a regular basis individuals on social media about profitable weight reduction.
ABC Information’ Katie Kindelan, Dr. Avish Jain, Kiara Alfonseca, and Max Zahn contributed to this report.