Jenny Craig appears to be shedding more than pounds.
The weight-loss company warned staffers to look for other employment opportunities as it prepares for potential mass layoffs.
The private equity-owned company said it didn’t know “if any employees may be retained” as it begins preparations to shutter its physical operations in internal communications obtained by NBC News.
“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,” stated Tuesday’s document titled “Jenny Craig Company transitions FAQs.”
Though Jenny Craig’s policy is to dole out severance pay based on employees’ job level and time with the company, the forthcoming laid-off staffers may not receive any.
“At this time, it is highly unlikely that these will be paid,” according to the document.
Several employees told NBC News they were recently notified about the potential job loss as the company has been searching for a buyer.
Jenny Craig, which was founded in Australia in 1983, issued “Warn Notices” — as required by federal law — for its locations where 50 or more employees could be impacted by the potential layoffs, but added that all employees will likely be impacted “in some manner” in the FAQs document.
The federal WARN Act requires employers with 100 or more staffers to give workers a heads-up about potential layoffs or worksite closure two months in advance.
The company also stated in the documents that it “has been going through a sales process for the last couple of months.” Bloomberg Law reported last month that Jenny Craig was seeking potential buyers as it grappled with “cash flow pressures.”
The California-based company was bought in April 2019 by HIG Capital, a $55 billion private equity firm, for an undisclosed amount, according to NBC News.
At the time, the company operated about 500 locations — both company-owned and franchised — in the US and Canada.
The physical stores offer customers personalized diet plans and consultations with coaches as well as prepackaged meals promising weight loss. One anonymous employee told the outlet his team was told to stop accepting new clients at their location.