WeightWatchers is losing weight after dropping another key piece

Founded over six decades ago, WeightWatchers (WW) was originally known as a subscription-based weight loss program consisting of easy-to-follow meal plans that aimed to help customers live a healthier life by losing excess weight.

However, the latest hack for celebrities and the rich to stay slim didn’t stay a secret for long, as several public figures began to confess to using GLP-1 drugs.

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GLP-1 drugs, which include Ozempic (NONOF) Wegovy and Trulicity are prescription injectables with semaglutide, usually given to patients with type 2 diabetes and, more recently, to treat obesity.

These drugs are meant to block the production of sugar in the liver, ultimately suppressing appetite and promoting weight loss.

The craze for these weight-loss injections began to take over the WeightWatchers clientele as quickly as they made people shed more pounds.

But as they say, if you can’t beat ’em, join ’em, and WeightWatchers jumped at the first opportunity to jump on board.

Oprah Winfrey attends THR Presents Live: The Color Purple at the Crosby Hotel on December 11, 2023 in New York City.

Arturo Holmes/Getty Images

WeightWatchers is getting into the diet pill game

In March 2023, the company that once touted the power of diet and calorie counting to promote weight loss decided to enter the prescription drug business, specifically GLP-1 drugs.

Although it completely contradicted what WeightWatchers (WW) touted for decades, the company struck a $106 million deal to acquire Sequence.

Sequence, now known as the WeightWatchers Clinic, is a comprehensive prescription weight loss program that gives WeightWatchers customers access to GLP-1 medications to help them maintain their weight loss.

This acquisition was completed not only because the company wanted to keep up with the new slimming trend, but also because it has been trying to meet for some time.

Since Monday, WeightWatchers stock is down more than 90% YTD.

According to WeightWatchers’ Q2 2024 earnings report, subscription revenue was down about 6%, with total revenue down nearly 11% year-over-year.

Subscribers at the end of the period were down more than 6% from last year, but clinical subscribers, which are those who subscribe to the WeightWatchers Clinic to receive GLP-1 medication, were up nearly 120%.

Although most sectors saw declining results, GLP-1 prescription drugs continue to dominate the weight loss market.

WeightWatchers CEO quits abruptly, and company doesn’t give a reason

On Friday, WeightWatchers announced that Sima Sistani will leave her role as CEO effective immediately after a two-year stint.

Sistani was CEO during the company’s transition into the weight loss drug business and actively supported the change.

However, WeightWatchers has yet to publicly specify why the former CEO decided to step down and leave immediately.

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After the announcement was made, the company’s shares fell nearly 3%.

Although a big setback for the company, WeightWatchers stock rose 5.3% on Monday.

However, this is not the first time a board member has abruptly left WeighWatchers.

Oprah Winfrey quits WeightWatchers after revealing a shocking secret

In February, WeightWatchers announced that Oprah Winfrey, who has served on the board since 2015, would be leaving the company effective immediately.

Although Winfrey also had an abrupt departure from the company, she couldn’t leave without doing one last good deed to mark her legacy in a project she spent so many years of her life promoting.

Winfrey donated all 10% of her shares in the company to the National Museum of African American History and Culture in Washington.

Related: Oprah Makes Major Move After Weight Loss Drug Controversy

In December 2023, Winfrey revealed that she used weight loss drugs and left the company because she did not want any conflict of interest associated with her new journey.

During “Jimmy Kimmel Live!”, Winfrey also announced An Oprah Special: Shame, Blame and The Weight Loss Revolution, where she will meet with medical experts and patients to discuss weight loss drugs.

She attributed her transition to the fact that losing weight wasn’t about willpower, but rather a state of mind she couldn’t get out of.

“It took up five decades of space in my brain, yo-yoing and feeling like why can’t I conquer this, thinking that willpower was my failure,” Winfrey said in an interview.

“Obesity is a disease. It’s not about the will, it’s about the brain.”

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