Commentary by crisis management expert Edward Segal, author of Crisis Ahead: 101 Ways to Prepare for and Bounce Back for Disasters, Scandals, and Other Emergencies.

The sudden departure in October of WeightWatchers CEO Sima Sistani, who had been in the job for less than three years, was the latest bump in the road for the weight-loss company.

New Trends And Competition

The company renamed and rebranded itself as WW in 2018 when the body-positivity movement became popular and said it would seek to transform itself from a weight-loss company into a wellness company. It also encountered stronger competition from self-care and nutrition companies, and demand for new medications like Ozempic, Wegovy and Zepbound that helps people lose weight, according to the New York Times.

Oprah Winfrey

Last December, board member and celebrity endorser Oprah Winfrey announced that she was taking an unnamed drug to help manage her weight, the New York Times reported. "The fact that there's a medically approved prescription for managing weight and staying healthier, in my lifetime, feels like relief, like redemption, like a gift, and not something to hide behind and once again be ridiculed for," she told People magazine.

In February, the company's stock took a hit "after it disclosed that Winfrey would exit its board and donate her stock to the National Museum of African American History and Culture," Reuters reported.

Declining Income And Subscribers

WeightWatchers began 2024 with a market value of nearly $700 million, which had tumbled to $65 million as of last Friday, according to Axios.

In second-quarter results that were released on Aug. 1, "the company reported net income down 54.2% to $23.3 million, with subscribers declining by 6.1%. The company also launched a 2024 restructuring plan to save $100 million annually through operational optimization,' The Business Journals reported.

Sima Sistani's Resignation

Then came the sudden departure of CEO Sima Sistani.

Sistani "led the Company's transformation to a modern digital health organization and extended the Company's portfolio of solutions into the telehealth space with the acquisition and integration of Sequence (now WeightWatchers Clinic). This expanded the Company's offerings to include high-touch clinical weight management solutions alongside its science-backed behavioral programs," WeightWatchers said in a press release.

Board member Tara Comonte was named interim CEO. She previously served as president and CFO of burger chain Shake Shack, Axios reported.

WeightWatchers said Comonte would "sharpen its strategic focus, and evolve its behavioral and clinical offerings to drive growth, and acknowledged that "Ms. Comonte steps into the role at a time when the Company is focused on improving its operational and financial performance while continuing to build on its product innovation and solutions for members."

Morningstar analyst Sean Dunlop told Axios that Sistani's departure "doesn't bode well" because weight-loss drugs are replacing Weight Watchers for many people who are looking for ways to lose weight.

WeightWatchers did not immediately respond to a request for comment for this story.

How The Company Could Bounce Back

Public relations and marketing experts weighed in with their advice on how the company could rebound.

Get Back To Basics

'WeightWatchers' issues likely come from losing sight of their core customers' needs. They should refocus their messaging around the real value of their program," Josh Cremer, founder and CEO of marketing firm The Rohg Agency, observed in an email interview.

Sistani's unexpected resignation could be a sign of deeper problems for the organization.

"Flexible pricing and packaging to meet changing lifestyles may also help. But the CEO's resignation suggests bigger internal issues. WeightWatchers needs to get back to basics: know your customers, speak to them clearly, and give them a genuine experience worth coming back for. With focus on their strengths, they can overcome this. But they must act fast. The clock is ticking," he concluded.

Pivot Quickly

"WeightWatchers has been facing significant challenges, from shifting consumer preferences and rising competition in the weight-loss industry to a steep financial burden," Ryan Waite, vice president of public affairs at Think Big, pointed out in an emailed message.

A lot will be riding on how fast and how well WeightWatchers can respond to a changing and challenging marketplace.

"The company's future hinges on its ability to pivot quickly, especially with the growing popularity of prescription weight-loss drugs like Ozempic. To survive, WeightWatchers needs to redefine its role in a changing market, focusing on being more than just a weight-loss brand by expanding its health and wellness offerings while re-engaging its community through digital innovation," he advised.

'A Robust Social Media Presence'

"A robust social media presence could offer WeightWatchers a lifeline, especially if it ties its content to the broader conversation on medical weight loss solutions. Leveraging influencers, 'realistic' success stories, and integrating digital tools would help the brand align with today's consumer expectations while maintaining its core principles. In doing so, WeightWatchers could potentially carve out a space for itself amidst the rapid shifts in the weight loss industry and ensure its longevity," Courtney Haywood, principal publicist at Courtney Haywood Agency Partners, suggested via email.

Reconnect

To survive the sudden departure CEO Sima Sistani and the company's other challenges, WeightWatchers "will have to make up with its first love, the Baby Boomer and Gen X lifetime members who preferred, enjoyed, and benefited from the social interactions of weigh-ins and meetings," Tiffany Joy Murchison, founder and CEO of TJM & Company Media Boutique, recommended in an email interview.

Maintaining the loyalty of key customers could also buy time for the interim CEO, or her successor.

"Reconnecting with the in-person and lifetime member audience would not only retain their loyalty but also create a stable environment, providing the new CEO with the necessary time and resources to get the company back on track," she concluded.

The crises and challenges that have faced the company —and will continue to face in the days ahead—would be enough to challenge many business leaders.

In the aftermath of Sistani's unexpected departure last Friday, add to the list of challenges that are facing the company the importance of finding a new permanent CEO to lead the organization.

                                                             #####