Oprah Winfrey is set to step down from the board of Weight Watchers, dealing a fresh blow to the company’s struggles against the growing popularity of weight-loss drugs.
The celebrity, a board member since 2015, announced she won’t seek re-election at the upcoming May shareholder meeting.
Following her recent disclosure of using weight-loss drugs as a “maintenance tool,” Weight Watchers’ shares plummeted by 27% in extended New York trade.
In her statement, Winfrey expressed her commitment to collaborating with Weight Watchers in raising awareness about obesity as a chronic condition.
She also disclosed plans to donate all her shares, approximately 10% of the company, to the National Museum of African American History and Culture.
Winfrey had initially joined the Weight Watchers program nearly a decade ago, sharing her weight-loss journey with fellow members.
Her departure coincides with the company’s challenges amid a significant shift in the weight-loss industry fueled by the success of anti-obesity drugs like Wegovy and Ozempic.
Weight Watchers’ latest financial report, released on the same day, revealed a net loss of $88.1 million for the last quarter of 2023, more than double the figure from the corresponding period the previous year.
The company had previously announced a $132 million acquisition of digital health company Sequence in March 2023, citing it as a strategic move in response to the evolving landscape of chronic weight management medications.
Weight Watchers CEO Sima Sistani highlighted that the Sequence acquisition would enable members to benefit from a comprehensive approach, incorporating nutrition, behavior change, and the prescription medications Ozempic and Wegovy.
Source-BBC
