Weight Watchers CEO Sima Sistani abruptly resigned on Friday after a two-year tenure that included controversial adoption of weight-loss drugs such as Ozempic and Wigovy.
Sistani pushed the 61-year-old company, known for its in-person meetings and portion control, to buy a telemedicine platform that connects patients with doctors who can prescribe popular obesity drugs.
But Weight Watchers' stock price has fallen sharply, plummeting more than 90% this year.
Shares fell nearly $3 on Friday to trade at less than $1.
Before the coronavirus pandemic and the explosion in weight-loss drugs, the stock had reached a high of more than $44.
Tara Comonte, a board member and former Shake Shack president, has been named interim CEO while Shake Shack considers a permanent replacement.
Oprah Winfrey, a former talk show queen and Weight Watchers board member, announced earlier this year that she would step down from the company's board following her comments. I started taking weight loss drugs.
Sistani, 61, tried to cash in on the weight-loss drug craze.
Under her leadership, WeightWatchers acquired Sequence and subsequently rebranded it as WeightWatchers Clinic.
The telemedicine clinic has enabled the company to begin dispensing GLP-1 drugs in addition to its traditional menu of behavior change programs.
But competition in the telemedicine space, particularly among companies offering versions of GLP-1 drugs, is hampering WeightWatchers.
Last month, the company announced it would lower its full-year sales target and streamline its operations in the face of “rapidly changing conditions.”
The stock price fell further as forecasts were lowered.
Before being named CEO in 2022, Sistani was the co-founder and CEO of Houseparty, a video chat app that allows up to eight people to participate in group calls at once.
