Since the 1980s, Jenny Craig has been one of the most notable names in the weight-loss space. With prepackaged frozen foods and detailed meal plans, this popular program has been used for decades by people looking to adopt a healthier diet and lose weight. But now it seems that Jenny Craig will be a far less visible presence—at least when it comes to brick-and-mortar locations. Read on to find out why the company is "winding down" its weight-loss centers.
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Jenny Craig has warned employees about potential mass layoffs.
iStockJenny Craig appears to be taking an axe to a significant part of its business. The weight-loss company has alerted its employees to potential mass layoffs, NBC reported. Staffers were sent a document titled "Jenny Craig Company Transition FAQs" earlier this week that indicated all workers are now at risk of losing their job.
"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," the document states, per NBC News.
According to the U.S. Department of Labor's (DOL) WARN Act, employers with 100 or more employees are generally required to give at least 60-days notice of mass layoffs affecting 50 or more workers.
The FAQ document further notes, "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."
The company said it is "winding down" weight-loss centers.
ShutterstockFollowing NBC News' report on potential layoffs, a Jenny Craig spokesperson confirmed to the news outlet that it is entering into a transition period as it begins "winding down physical operations."
The company is "embarking on the next phase of our business to evolve with the changing landscape of today’s consumers," the Jenny Craig spokesperson told NBC News.
"Like many other companies, we’re currently transitioning from a brick-and-mortar retail business to a customer-friendly, e-commerce driven model," they added. "We will have more details to share in the coming weeks as our plans are solidified."
Your local center may be closing soon.
Adam Webb / iStockAs one of the world's largest weight-loss companies, Jenny Craig's physical presence is quite widespread. It has approximately 600 centers open worldwide, with nearly 500 of these locations spread throughout the U.S. and Canada.
Best Life reached out to Jenny Craig for more information on upcoming closures, and will update this story with their response.
But a current Jenny Craig employee (who asked to remain anonymous) told NBC News that the center he works at has recently been told to stop taking in new clients. At the same time, dozens of LinkedIn users in the U.S. who list Jenny Craig as their current employer have posted "Open to Work" notices in the past few days, according to the news outlet.
Jenny Craig has faced recent financial challenges.
ShutterstockJust last month, Bloomberg reported that Jenny Craig was searching for a potential buyer amid "cash flow pressures." According to the news outlet, the company has roughly $250 million of debt and is how considering filing for bankruptcy if it cannot find a buyer.
In the FAQ document sent to staffers, Jenny Craig confirmed its search. The company stated that it "has been going through a sales process for the last couple of months," NBC reported.
