Jenny Craig has alerted employees to potential mass layoffs as it begins “winding down physical operations” and hunts for a buyer, according to communications the weight-loss company sent some staffers this week.
The company said it “has been going through a sales process for the last couple of months,” according to a document titled “Jenny Craig Company Transition FAQs” that was dated Tuesday and provided to NBC News.
Several current Jenny Craig staffers told NBC News that the company alerted them in recent days about potential layoffs.
“While we had to issue Warn Notices specifically for sites where we had more than 50 people potentially impacted, this will likely impact all employees in some manner,” the FAQ document said.
“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,” it said.
The federal WARN Act generally requires employers with at least 100 staffers to give workers 60 days’ notice of potential mass layoffs or worksite closures.
It couldn’t be determined how many employees received the document. Spokespeople and executive officers at Jenny Craig didn’t respond to requests for comment.
Bloomberg Law reported last month that the company was pursuing a sale.
Since its launch in 1983, Jenny Craig has been known for its prepared meals and dieting plans as well as its weight-loss centers that offer in-person consultations with coaches.
The Carlsbad, Calif.-based company, which was acquired by H.I.G. Capital, a $55 billion private equity firm, for an undisclosed amount in April 2019, operated roughly 500 company-owned and franchised stores in the U.S. and Canada as of its acquisition, H.I.G. said at the time. The private equity firm didn’t respond to a request for comment.
Dozens of LinkedIn users across the U.S. who list Jenny Craig as their current employer, ranging from on-site workers to corporate staff, have posted “Open to Work” notices within the past 24 hours.
On Thursday afternoon, Emily Hawkins, Jenny Craig’s chief people officer, posted endorsements of several colleagues on the platform who’d flagged themselves as open to other opportunities. Hawkins didn’t respond to requests for comment.
One current Jenny Craig employee, who spoke anonymously because he wasn’t authorized to discuss internal operations, said the location where he works has been directed to stop receiving new clients.
Jenny Craig’s policy is to provide severance pay to laid-off employees “based on job level and tenure with the company,” according to the FAQ document.
“However, at this time, it is highly unlikely that these will be paid,” it said.
Source: | This article originally belongs to Nbcnews.com
