Home » US Employment News » Software startup Noom cut 10 percent of its workforce

Software startup Noom cut 10 percent of its workforce

By Nithya Bose in US Employment News, posted October 16, 2022

Noom, a health coaching platform, has laid off 10 percent workforce, or around 500 workers.

This is the second layoff affecting its coaching staff within a few months.

Since the beginning of the year, the firm has almost reduced half the number of coaches.

Familiar sources said the number appears to be about 1,000 coaches.

A company spokesperson said: “Noom has experienced extraordinary growth over the past several years, and it’s essential that we are structured in a way that enables us to continue growing over the long term.

“We recently made the difficult decision to reduce the number of Noom employees.

We are deeply grateful for their contributions to Noom, and we wish them continued success.”

The company declined to comment on the extent of layoffs, severance packages, or strategy.

Since its inception in 2008, the firm has attracted over $650 million in funding.

It is particularly recognized for its controversial approach to weight reduction and dieting.

The platform's decision to reduce its coaching services reflects a shift away from its original pitch, which was to integrate intelligent nutrition with fitness coaching.

Using this approach, the software firm generated $400 million in revenue in 2020.

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Noom extended its coaching services a year later by introducing a mental health vertical.

Artem Petakov and Saeju Jeong, co-founders, addressed the layoffs to staff and stated that it was important for the firm.

They said it is to “manage expenses, increase efficiency and be more effective about how we achieve our mission” despite “significantly improving” company financials.

Furthermore, they stated that the startup's main bet is on developing a more comprehensive mind and body platform with a better level of personalization.

Source: TechCrunch

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