Jenny Craig, a weight-loss company with nearly 500 centers in the US and Canada, is reportedly shutting down some of its physical operations and warning employees of potential mass layoffs due to industry upheaval caused by popular new prescription drugs like Ozempic. Eli Lilly, the manufacturer of Ozempic, has reported that the drug leads to substantial weight loss in diabetes patients. Jenny Craig’s program offers nutritionally balanced menus designed to help people lose weight. Jenny Craig’s layoffs have spurred the company to shift towards an e-commerce-driven model in response to industry changes. However, the company has yet to disclose how many centers will close or how many employees will be affected by the shift.

How is WeightWatchers responding to the changing weight-loss industry?

Amidst Jenny Craig’s layoffs, weight-loss industry leaders like WeightWatchers are also making moves to adapt to the changing landscape. In a recent acquisition, WeightWatchers bought Sequence – a telehealth subscription service connecting patients to doctors who prescribe weight-loss and diabetes drugs – for $106 million, positioning the company for a stake in the growing market for prescription weight-loss management.

Bloomberg reported that Jenny Craig has approximately $250 million in debt and may consider filing for bankruptcy if efforts to find a buyer for its assets fail.

Employees being dismissed during large layoffs may face a saturated job market. This factor may increase the value of their severance package entitlement, despite what an employer may claim. An employer cannot point to a depressed economy to justify reducing severance packages.  The opposite is true. Employees entering a depressed economy may be able to use this factor to leverage a lengthier notice period.

Severance pay for Jenny Craig’s employees

Jenny Craig’s employees may be entitled to up to 24 months of severance pay when fired or laid off, depending on several factors. Severance pay is the compensation a non-unionized worker in Canada receives when fired without cause, and even if an employee is fired for cause, they may still be entitled to full severance pay.

At Whitten & Lublin, we understand that facing job loss or termination can be a stressful and challenging experience. Our experienced employment lawyers can help you navigate your legal options and ensure that you receive the compensation you deserve. We encourage anyone affected by the recent layoffs in Canada to contact us for a consultation either online or by phone at (647) 946-1276 today.