WeightWatchers Shares Plummet as Oprah Winfrey Steps Down from Board
In a surprising turn of events, WeightWatchers shares experienced a significant drop of over 25% in premarket trading on Thursday. This decline came shortly after Oprah Winfrey, a prominent figure in the company, announced her decision not to seek reelection to the board at the upcoming annual meeting of shareholders in May. Winfrey has been serving on the board of directors since 2015, making her departure a notable loss for the company.
WeightWatchers confirmed Winfrey’s departure in a statement and expressed gratitude for her contributions. “Oprah has been an inspiring presence and passionate advocate for our members, providing critical insights and counsel that has helped shape WeightWatchers over these last 8 years,” said Thilo Semmelbauer, chairman of the board. “On behalf of the Board, I would like to thank her for her energy, dedication, and for continuing to play a role as a collaborator and thought partner going forward. What I know for sure, we will dearly miss her presence on the Board.”
Despite stepping down from the board, Winfrey expressed her commitment to continue working with WeightWatchers and CEO Sima Sistani to address the issue of weight health. “I look forward to continuing to advise and collaborate with WeightWatchers and CEO Sima Sistani in elevating the conversation around recognizing obesity as a chronic condition, working to reduce stigma, and advocating for health equity,” Winfrey stated. Her dedication to this cause is evident as she plans to participate in various public forums and events where she will be a vocal advocate for advancing this conversation.
Furthermore, Winfrey made a significant announcement regarding her financial interest in WeightWatchers. She revealed her intention to donate her stake in the company to the National Museum of African American History and Culture (NMAAHC) in Washington, D.C. This decision aligns with her long-standing support for the organization and its mission to promote and highlight the contributions of African Americans.
WeightWatchers expressed support for Winfrey’s proposal, emphasizing that her donation would eliminate any perceived conflict of interest surrounding her involvement with weight loss medications. The company also stated that Winfrey intends to donate the proceeds from any future exercises of her WeightWatchers stock options to the NMAAHC.
Amidst these developments, WeightWatchers released its latest financial report, which revealed a significant loss. The report included the fourth-quarter and full-year 2023 results, indicating a total loss of $88.1 million. This figure is more than double the amount recorded during the same period in the previous year, which stood at $35.8 million. These financial challenges add further complexity to the company’s current situation.
Oprah Winfrey’s departure from WeightWatchers’ board of directors and her decision to donate her stake to the NMAAHC have undoubtedly made waves in the business world. Her presence and influence within the company will be sorely missed, as she has played a vital role in shaping WeightWatchers over the past eight years. However, her commitment to advocating for weight health and her dedication to supporting African American history and culture continue to shine through. As WeightWatchers navigates these changes and faces financial hurdles, it remains to be seen how the company will adapt and move forward without Winfrey’s invaluable contributions.
