Oprah Winfrey, the renowned media mogul, is stepping down from the board of WeightWatchers after eight years. This departure comes as a significant blow to the company, which is currently grappling with financial losses and facing tough competition from weight-loss drugs. The announcement of Winfrey’s departure caused a sharp decline in the company’s share prices, falling more than 27 percent in post-market trading.
WeightWatchers, now known as WW International, has been facing heavy competition from injectable weight-loss drugs like Ozempic, Wegovy, and Mounjaro. These drugs have gained immense popularity worldwide in recent years, posing a challenge to traditional weight-loss companies. The effectiveness of these drugs in managing obesity, diabetes, and heart problems has attracted a large consumer base. However, some patients have reported side effects such as nausea, diarrhea, and heart palpitations. Additionally, the marketing strategies of offering these drugs to plus-size influencers have sparked backlash.
WeightWatchers itself suffered a significant financial loss of over $88 million in 2023, more than double the previous year’s loss of $35.8 million. In response to the growing demand for weight-loss drugs, manufacturers are racing to meet the market needs and investing heavily in expanding their manufacturing capacity.
Despite the challenges faced by WeightWatchers, Oprah Winfrey’s involvement with the company has been highly beneficial for shareholders. When she joined the board in 2015, she purchased a 10 percent stake for $43 million. At that time, the company was struggling to retain subscribers as people turned to fitness apps, dieting apps, and wearables. Winfrey’s personal success story with WeightWatchers, having lost 40 pounds on the program, resonated with many individuals who were also struggling with their weight.
In December 2023, WeightWatchers made a strategic move by acquiring the health company Sequence. This acquisition aimed to provide subscribers with advice and access to prescription weight-loss drugs. The company also launched WeightWatchers Clinic, which allows members to consult with doctors who can prescribe these medications. CEO Sima Sistani emphasized that WeightWatchers aims to offer sustainable and science-backed solutions for all weight health pathways, whether medications are part of an individual’s journey or not.
Winfrey’s decision to step down from the board comes at a time when she has been open about her use of weight-loss medication prescribed by her doctor. In an interview with People magazine, she expressed relief and redemption in having a medically approved prescription for managing weight and staying healthier. Winfrey has been vocal about her struggles with weight and appearance, having experienced yo-yo dieting and falling prey to various diet scams. Her personal journey has resonated with many individuals who have faced similar challenges.
In light of her departure, Winfrey has decided to donate her stock in WeightWatchers to the National Museum of African American History and Culture in Washington. The board of WeightWatchers has expressed support for her decision and thanked her for her contributions to the company.
As WeightWatchers continues to navigate financial losses and competition from weight-loss drugs, it remains to be seen how the company will adapt its strategies to stay relevant in the evolving weight-loss industry. The departure of Oprah Winfrey from the board marks the end of an era and raises questions about the future direction of the company. However, with its recent acquisitions and focus on providing comprehensive weight health solutions, WeightWatchers is determined to remain a key player in the industry.
