by Jenny Craig has alerted employees to potential layoffs as it begins to “wind down physical operations” and looks for a buyer, according to communications the weight-loss company sent to some employees this week.
The company said it “has been going through a sales process for the past few months,” according to a document titled “Frequently Asked Questions About Jenny Craig’s Company Transition” dated Tuesday and provided to NBC News.
Several current Jenny Craig employees told NBC News that the company alerted them in recent days about possible layoffs.
“While we had to issue advisories specifically for sites where we had more than 50 people potentially affected, this will likely affect all employees in some way,” the FAQ document said.
“We don’t know the exact employees/groups that will be affected, and whether any employees can be retained. As a result, we suggest that you anticipate that your employment may be affected and start looking for other employment,” he said.
The federal WARN Act generally requires employers with at least 100 employees to give workers 60 days’ notice of possible mass layoffs or workplace closures.
It could not be determined how many employees received the document. Jenny Craig’s spokespersons and executive officers did not respond to requests for comment.
Bloomberg Law reported last month that the company was chasing a sale.
Since its launch in 1983, Jenny Craig has been known for its ready meals and diet plans, as well as its weight loss centers that offer in-person consultations with trainers.
The Carlsbad, California-based company, which was acquired by HIG Capital, a $55 billion private equity firm, for an undisclosed amount as of April 2019, operated approximately 500 owned and franchised stores in the US and Canada upon its acquisition, HIG said at the time. The private equity firm did not respond to a request for comment.
Dozens of LinkedIn users in the US who list Jenny Craig as their current employer, from on-site workers to corporate staff, have posted “Open for Work” notices in the last 24 hours.
On Thursday afternoon, Emily Hawkins, Jenny Craig’s director of people, published endorsements from various colleagues on the platform who had marked themselves as open to other opportunities. Hawkins did not respond to requests for comment.
A current Jenny Craig employee, who spoke anonymously because he was not authorized to discuss internal operations, said the place where he works has been ordered to stop taking new customers.
Jenny Craig’s policy is to provide severance pay to terminated employees “based on job level and tenure with the company,” according to the FAQ document.
“However, at this time, it is highly unlikely that they will be paid,” he said.
