WeightWatchers said Friday that its CEO Sima Sistani, who shifted the weight loss giant’s strategy to prescribing obesity drugs, is stepping down from her role, effective immediately.
The company appointed Tara Comonte, a WeightWatchers board member and the former chief executive of fertility tech company TMRW Life Sciences, as interim CEO. WeightWatchers’ share price $WW slipped about 3% on the news.
In a media release announcing the leadership change, the company said Comonte is taking over as it focuses on improving its operational and financial performance. Sistani posted a note to team members on LinkedIn in which she said the decision to leave was hers, as the company now “requires a renewed focus and different expertise.”
Under Sistani, who became CEO in March 2022, WeightWatchers has struggled with an explosion of competition, as telehealth startups and incumbent healthcare organizations flooded the weight loss market to capitalize on demand for new GLP-1 weight loss medications. Longtime board member Oprah Winfrey relinquished her seat in May, and WeightWatchers’ stock price has plunged about 90% this year to less than $1.
Historically focused on helping people lose weight by dieting, WeightWatchers tried to compete by acquiring GLP-1 prescription startup Sequence in April 2023. But shortages of the drugs, spotty insurance coverage, the availability of cheaper compounded versions, and skyrocketing advertising costs held back WeightWatchers’ growth.
The company in August reported fewer subscribers and lower revenue compared with the year before, and it said its full-year operating loss would be greater than previously expected. It announced plans to save about $60 million in costs by cutting its workforce, including 40% of positions that were vice president-level and higher.