Get All Access for $5/mo

'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.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

The Side Hustle He Started in His College Apartment Turned Into a $70,000-a-Month Income Stream — Then Earned Nearly $2 Million Last Year

Kyle Morrand and his college roommates loved playing retro video games — and the pastime would help launch his career.

Science & Technology

Why We Shouldn't Fear AI in Education (and How to Use It Effectively)

Facing resistance to new technologies in the educational process is nothing new, and AI is no exception. Yet, this powerful tool is set to overcome these challenges and revolutionize education, preparing students and professionals for a future of unparalleled efficiency and personalized learning.

Business News

Apple's AI Has a Catch — And It Could Help Boost Sales

Not every iPhone owner will get to use the new Apple Intelligence.

Business News

Elon Musk Threatens to Ban Employees from Using Apple Products, Says Will Lock Devices in 'Cages'

The Tesla founder sounded off on X following Apple's 2024 Worldwide Developer Conference on Monday.

Business News

Y Combinator Helped Launch Reddit, Airbnb and Dropbox. Here's What I Learned From Its Free Startup School.

The famed startup accelerator offers a free course on building a business — and answers five pressing questions for founders.

Business Culture

You'll Always Have Anxious Employees if You Don't Follow These 4 Leadership Tactics

Creating a thriving workplace environment hinges on the commitment of company leaders to nurture and inspire their teams.