Weight loss startup Noom confirms more layoffs (2024)

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Weight loss startup Noom confirms more layoffs? ›

In April, Insider reported that Noom was laying off about a quarter of its coaches. It conducted another round of cuts in the fall, with TechCrunch reporting it was laying off around 500 workers, or about 10% of its staff.

In a statement, a Noom spokesperson confirmed there were job cuts at the company, saying, “As part of Noom's continuing efforts to build a more efficient company focused on meeting the evolving needs of our customers, we made the difficult decision to reduce a portion of our workforce.

It's part of a larger decision to lay off at least 25% of its coaching staff – with plans to cut another 315 employees over the next 10 days. The move comes as Noom looks to pivot into video-based coaching. The company has made headlines over investigations into its "non-diet" premise and its misleading ad tactics.

In addition to the auto-renewal and billing complaints, Noom faced criticism from experts and consumers for its weight loss program. While branding itself as different from other diets, the app has previously set very low calorie goals that dietitians say put users at risk of side effects.

The Noom controversy is that its app has triggered disordered eating in some users because of its focus on a calorie-restricted diet, food tracking, and regular weighing. Although it markets itself as an anti-diet weight loss solution, many people believe it encourages the same behaviors as traditional diets.

In 2022, Noom settled a lawsuit that alleged it had misled users into signing up for subscriptions that were difficult to cancel. In October, Bloomberg reported Noom had begun searching for a new CEO to replace cofounder Saeju Jeong, who will become executive chairman when a successor is named.

But in reality, Noom intentionally created a difficult cancellation process, so users who were unable to withdraw in time were instantly back charged for months of service. This “automatic enrollment trap” led to more than 1,000 complaints with the Better Business Bureau and ultimately the lawsuit. See Third Am. Compl.

While Noom may be a good fit for some people, there are a few downsides. Most notably, Noom doesn't offer in-person interactions with coaches or other Noom members. The cost, concerns around low calorie goals, and potential pitfalls of food tracking are among other downsides of the program.

The estimated total pay range for a Health Coach at Noom is $40K–$51K per year, which includes base salary and additional pay. The average Health Coach base salary at Noom is $45K per year. The average additional pay is $0 per year, which could include cash bonus, stock, commission, profit sharing or tips.

Noom's diet recommendations are restrictive and hierarchical in a way that promotes disordered eating. When a user downloads Noom's app, it onboards them by asking them how much weight they want to lose and how fast they want to lose it.

Is Noom worth it in 2024? ›

It's one of the few programs we found with a psychology-based approach, encouraging behavioral changes and focusing on nutrition and weight management education. Noom's psychological and educational strategy helps you gain knowledge to build and sustain healthier habits.

Just like most weight loss programs, Noom relies on calorie counting, which often fails to sustain results long-term. When calories are restricted, the body's metabolism slows down as a natural response to conserve energy.

Noom for weight loss during menopause isn't about restricting or starving yourself. And if you're using Noom postmenopause, you'll follow the same approach. You'll learn how to make choices that are nutritionally rewarding, keep you feeling satisfied on fewer calories, and leave space for the foods you love.

Noom was founded in 2008 by friends Artem Petakov and Saeju Jeong. The app launched in 2016. The company is headquartered in New York City. Petakov, previously a software engineer at Google, is head of Noom Ventures; Jeong is Noom's chief executive.

Noom uses a system that separates "good" and "bad" foods by assigning colors to different edible treats. Each color signifies how much or how little you should eat to stay on track toward your goals.

But in reality, Noom intentionally created a difficult cancellation process, so users who were unable to withdraw in time were instantly back charged for months of service. This “automatic enrollment trap” led to more than 1,000 complaints with the Better Business Bureau and ultimately the lawsuit. See Third Am. Compl.

Among the common complaints: people felt like they were talking to a chat bot instead of a person; the coaching support is superficial; coaches aren't available 24/7 and often leave you hanging. When I tried the app, I asked a few questions and felt like responses were slow and vague.

Employees rate Noom 2.7 out of 5 stars based on 1,228 anonymous reviews on Glassdoor. In 2020, Noom employees have voted their company to be one of Glassdoor's Best Places to Work.

Noom, a health coaching platform valued at $3.7 billion last year, is laying off a portion of staff for the second time in a matter of months, TechCrunch has learned from sources. Noom has laid off 10% of its staff, or around 500 people, which is a reduction that mostly impacts its coaching team.