'Begin To Seek Other Employment': Jenny Craig Ominously Warns Employees of Mass Layoffs, Bankruptcy A leaked memo to staff was viewed by NBC News.

By Emily Rella

Getty Images
Jason Alexander attends a press conference to unveil Jason Alexander's 30 pound weight loss with Jenny Craig at The Pierre Hotel on May 17, 2010 in New York City.

A leaked memo suggests that weight loss company Jenny Craig may be losing more than pounds.

In the document viewed by NBC News, the company stated that it's looking to get acquired and "has been going through a sales process for the last couple of months." Staffers alerted the outlet that whispers of layoffs had been happening for weeks.

"This will likely impact all employees in some manner," the document stated. "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 note also said that employees will be eligible for severance "based on job level and tenure with the company," without further elaborating.

According to Bloomberg, Jenny Craig could file for bankruptcy as early as next week, noting that the company currently has around $250 million in debt.

The company said Friday morning that it was looking to shift toward a stronger e-commerce model and shy away from its traditional brick-and-mortar locations — the current Jenny Craig client process relies on customers coming into physical locations to meet with their weight loss coaches.

RELATED: WeightWatchers Is Getting Into the Ozempic And Wegovy Weight Loss Drugs Game

The weight loss company is based in Carlsbad, California, and currently operates over 500 locations in the U.S. and Canada, including both franchised and company-owned.

Jenny Craig did not immediately respond to Entrepreneur's request for comment regarding potential layoffs or an acquisition.

RELATED: A New Weight-Loss Drug Could Be a Complete Game Changer. 'Psychologically, You Don't Want to Eat.'

Emily Rella

Entrepreneur Staff

Senior News Writer

Emily Rella is a Senior News Writer at Entrepreneur.com. Previously, she was an editor at Verizon Media. Her coverage spans features, business, lifestyle, tech, entertainment, and lifestyle. She is a 2015 graduate of Boston College and a Ridgefield, CT native. Find her on Twitter at @EmilyKRella.

Editor's Pick

Related Topics