Digital weight loss company Noom has confirmed it laid off a portion of its staff.

"In an effort to build a more efficient business centered around the needs of our customers, we made the difficult decision to reduce a portion of our workforce," a company spokesperson told MobiHealthNews.

"This is not a decision we made lightly, and we are committed to providing our impacted colleagues with comprehensive support during this transition. We are grateful for the hard work and dedication they have made to Noom as we continue to position ourselves as a leader in the health and wellness space."

"We made these changes to focus our workforce on the most critical areas of the business. With these changes, the company will be better positioned to deliver world-class products, technology and coaching to more people looking to lead healthier lives," the spokesperson said. 

According to the spokesperson, the recent move was related to "a revenue mix shift within the Noom business towards our fast-growing GLP-1-related products, including Noom GLP-1Rx and Noom GLP-1 Companion." 

GLP-1s, or glucagon-like peptide-1 receptor agonists, are a class of medications used in the treatment of type 2 diabetes and more recently, in the management of chronic weight conditions.

"The GLP-1Rx program, which launched in September, is performing extremely well and we are investing heavily in that portion of the business. As part of our annual planning process, we made the difficult decision to shift resources into our fastest growing segments."

THE LARGER TREND

In 2024, Noom announced its commercial business, Noom for Work, partnered with Liviniti, a national pharmacy benefit manager, to offer plan sponsors and their employees a digital GLP-1 Companion for chronic weight conditions. 

Noom's GLP-1 Companion integrates with PBM processes, offering nutrition guidance and fitness-focused lessons.

Noom also partnered with dance fitness company Zumba last year to offer Noom members access to Zumba fitness content and allow Zumba's dance instructors to become "Mindset Coaches" at Noom. 

Noom's members now have access to Zumba's dance routines and fitness sessions, along with motivational and engagement offerings to keep them focused on their goals.

In 2023, Noom expanded its digital enterprise offering, Noom for Work, to include clinical obesity management solution Noom Med. 

Noom Med includes psychological tools, community support and content, and access to clinicians with obesity-care training. The clinicians provide customized weight-loss plans and support for patients in reducing their reliance on GLP-1 medications. Those are drugs that help manage glucose levels in individuals with Type 2 diabetes.

In 2022, Noom announced a round of layoffs. According to TechCrunch, Noom let go of about 500 workers, or around 10% of its staff, mostly affecting its coaching team. 

The layoffs marked the second round of layoffs at the company in 2022. Insider first reported in April that Noom cut about a quarter of its coaches as part of a strategy shift in its coaching model. 

In 2021, Noom landed $540 million in Series F funding. Silver Lake led the round, with participation from Oak HC/FT, Temasek, Novo Holdings, Sequoia Capital, RRE and Samsung Ventures. Noom's prior funding round raked in $58 million in 2019.