WeightWatchers Australia forced to shed staff as Ozempic effect takes toll

by Admin
September 17, 2024

WeightWatchers Australia has confirmed it will slash staff in Australia as the global group struggles for financial survival against a new generation of weight-loss drugs like Ozempic.

The business’ Australian arm, which has about 150 staff under payroll, plus contractors, confirmed the cuts resulted from a move to cease in-person and online meetings which have formed a core part of the program’s success.

Talk show host Oprah Winfrey, previously a major ambassador and board member of WeightWatchers, has confirmed she is now using weight-loss drugs like Ozempic.Credit: Getty Images

“While we will be discontinuing WeightWatchers in-person studio workshops as well as virtual personal coaching in Australia and New Zealand, effective 2 November, 2024, we are continuing to offer virtual workshops and full digital access through the WeightWatchers app, offering local members the option to move to a digital-only subscription,” a spokesperson said.

“Unfortunately, with these changes, there are employees who will be impacted. We are fully committed to supporting them throughout this transition period and thank them for their loyalty and dedication to serving our members at the highest standard.”

The company did not say how many workers would be affected. Its most recent financial report from 2022 said it had 176 staff in Australia.

Local rival Jenny Craig’s Australian operations collapsed May last year, despite reassuring the public they would “currently continue to operate and support our clients” after the collapse of its US parent company. It was ultimately unable to find a buyer, leading to the closure of 73 stores. Woolworths-backed healthcare tech Eucalyptus agreed to buy Jenny Craig Australia’s online capability.

WeightWatchers’ US operations slashed in-person meetings in March 2023 to move to online workshops and has embraced GLP-1 drugs, like Ozempic, to confront the existential threat to its traditional business which has sent its shares plunging from $US45 in 2020 to just US81¢ this week.

US celebrity Oprah Winfrey dealt the group a major blow in February when she revealed that she was stepping down from the WeightWatchers board and donating her 10 per cent stake in the business to charity.