After nearly a decade serving as a director on the board of WeightWatchers, media mogul Oprah Winfrey has announced her departure, indicating a big change for the company facing intensified competition from new weight-loss drugs and operational shifts.
Winfrey's decision not to stand for re-election at the upcoming annual shareholder meeting in May marks the end of her influential role within the beleaguered weight management company.
Winfrey informed the company of her departure earlier this week, with WeightWatchers disclosing that her decision was not prompted by any disagreement or issues related to the company's operations. Sima Sistani, CEO of WeightWatchers, expressed gratitude for Winfrey's contributions, citing her as an inspiring presence and passionate advocate for weight health.
In her statement, Winfrey affirmed her continued commitment to collaborating with WeightWatchers and CEO Sima Sistani, particularly in advancing conversations surrounding obesity as a chronic condition and advocating for health equity.
Despite her departure from the board, Winfrey remains sincere to WeightWatchers' mission, announcing her intention to donate her sizable stake in the company to the National Museum of African American History and Culture. This move reflects Winfrey's dedication to societal impact and further solidifies her legacy beyond corporate governance.
However, the news of Winfrey's departure had an immediate impact on WeightWatchers' stock performance, with shares plunging by as much as 25% in premarket trading and experiencing a huge drop of nearly 70% overall. Winfrey's exit comes a year earlier than anticipated, as she had previously signed an extension until 2025, highlighting the unexpected nature of this development.
Winfrey's association with WeightWatchers began in 2015 when she joined the board and acquired a 10% stake, offering newfound relevance into the struggling company amid shifting consumer preferences towards easier dieting methods. However, WeightWatchers has faced mounting competition in recent years, particularly from GLP-1 prescription drugs like Ozempic and Wegovy, which are increasingly used for weight-loss purposes.
Responding to this competitive landscape, WeightWatchers introduced a new membership plan tailored for individuals using these prescription drugs, ensuring access to doctors who can prescribe the medications, as well as daily nutrition plans and insurance coordination. Additionally, the company made strategic acquisitions, including the purchase of Sequence, a telehealth business specializing in virtual prescriptions for weight loss drugs.
Winfrey's departure comes amid her own personal health journey, as she revealed to People Magazine in December that she had incorporated a weight-loss medication into her regimen, though the specific drug was not revealed. This revelation signifies Winfrey's ongoing commitment to prioritizing health and wellness, both personally and within the broader societal context.
