Jenny Craig is reportedly warning its employees of mass layoffs as the weight loss company winds down some of its operations.
The weight loss company, which was founded in 1983, is hunting for a buyer.
Jenny Craig may file chapter 11 bankruptcy protection if it cannot find a buyer for its assets.
Jenny Craig reportedly has $250 million of debt.
It is unclear how many of the 500 weight loss centers it will be closing.
Industry experts say antidiabetic medications like Wegovy and Ozempic, which are also used to treat people who struggle with obesity, have disrupted the weight loss industry.
NBC News reported:
Jenny Craig has alerted employees to potential mass layoffs as it begins “winding down physical operations” and hunts for a buyer, according to communications the weight-loss company sent some staffers this week.
The company said it “has been going through a sales process for the last couple of months,” according to a document titled “Jenny Craig Company Transition FAQs” that was dated Tuesday and provided to NBC News.
Several Jenny Craig staffers said the company alerted them in recent days about potential layoffs.
The FAQ document said: “While we had to issue Warn Notices specifically for sites where we had more than 50 people potentially impacted, this will likely impact all employees in some manner.
“We do not know the exact employees/groups whom will be impacted, and if any employees may be retained. As a result, we would suggest that you anticipate that your employment may be impacted and begin to seek other employment,” it said.
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