The adoption of drugs that were originally meant to control diabetes, Wegovy and Ozempic, for weight loss has revolutionized the dieting industry, and probably no other company has felt the economic shock of the change as much as Weight Watchers.
These weight loss medications work by introducing GLP-1 receptor agonists that significantly reduce appetite and therefore, caloric intake. They mimic an incretin hormone, which signals the brain to induce satiety, leading to effective weight management in individuals with obesity or weight-related medical conditions, without the tremendous exercise of willpower and the constant drudgery of counting calories. Not to mention that the rigid and unending strategy associated with Weight Watchers has a very low long-term success rate and adversely affects the quality of life of those doomed to practice it.
Weight Watchers has had to embark on a transformative journey, incorporating weight loss drugs like Wegovy to enhance its offerings. The “Clinic,” is how the company has rebranded Sequence, a weight loss medication subscription service they acquired last year. The program will connect patients with providers who can prescribe GLP-1 medications like Ozempic and Wegovy.
This pivot may save or at least stave off the demise of an outdated industry, but consumers aren’t happy with WW moving forward in such a different direction from its past protocols without first making amends for its failed philosophy and practices. In the face of mounting evidence that weight loss is much more than willpower and calories, they want an apology for what is now considered a discredited and misdirected strategy for weight loss.
There’s a growing demand among its community seeking recognition of what they perceive as previous missteps. Weight Watchers’ pivot towards reinvention is not being easily accepted without an accompanying sincere acknowledgement of the emotional and psychological damage wreaked by its past practices. Followers are voicing their need for an apology, not as a mere gesture, but as a foundational step towards healing and moving forward.
Ashley Dunham, an influencer with 85,000 followers on TikTok, is one of those who turned down WeightWatchers’ offer to partner on the promotion of Sequence and the Clinic program. “All it did was make us cringe,” Dunham said. “I understand trying to reinvent themselves, but I think that reinvention needs to start with an apology.
In light of these momentous changes in the weight loss industry, Weight Watchers’ stock is in freefall. In late February, in an announcement concurrent with Weight Watchers publishing their latest financial figures — which showed a net loss of over $88 million for the last three months of 2023 — longtime board member Oprah Winfrey revealed that she would not stand for reelection at the company’s next shareholder meeting in May. This further prompted heavy selling.
Winfrey’s admission that she had resorted to Ozempic to lose weight—after decades of relying on, and fronting for, Weight Watchers, may have been the final nail in the coffin of credibility for Weight Watchers.
Their current investment in GLP-1s is not only causing anger among its disillusioned community, it’s also raising a flag among investors who aren’t convinced that it will be the solution for the company’s problems.
One analyst consulted by CNBC summarized Weight Watchers’ dilemma: “Sequence should be the future. That’s the GLP-1 playbook, but at this point it’s still very small. ..The bigger issue is the legacy the business continues to suffer [from] and the company is overly levered.”
