WW International Inc., better known as WeightWatchers, is laying off employees and cutting costs as it struggles to stay afloat in a new era of obesity treatment.
The New York company will save about $100 million a year by streamlining its business and cutting an undisclosed number of jobs, WeightWatchers said Thursday.
The company’s shares dropped by 5% in premarket trading. Shares have lost about 90% of their value this year as the escalating popularity of weight-loss treatments from Eli Lilly & Co. and Novo Nordisk A/S have decimated demand for its trademark diet plans.
WeightWatchers missed analysts’ subscriber estimates in the second quarter, as revenue fell 11% compared to the prior year. The company’s business has been in steady decline since 2019, as the Covid-19 pandemic dramatically reduced the number of subscribers to its in-person meetings. WeightWatchers’ once-growing online offering has plateaued, and the company is relying on its recently acquired telehealth business to improve its cash flow.
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