WeightWatchers shares took a significant hit after media mogul Oprah Winfrey announced her departure from the company’s board due to potential conflicts of interest tied to weight-loss medications. Oprah, who has long been associated with the brand and admitted to using weight-loss drugs recently, will donate her 1.4 percent stake (estimated at $12 million) to the National Museum of African American History and Culture.
“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,” Oprah said in a statement.
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Her departure comes after a nine-year tenure on the board, and she won’t seek reelection at the upcoming May 2024 shareholder meeting.
Oprah‘s association with WeightWatchers has been a central aspect of the company’s marketing efforts, employing her name and image.
“Oprah is an inspiring presence and passionate advocate both for our members and for society at large, in elevating the conversation around weight health,” CEO Sima Sistani said according to CNN.
“While I and the rest of our directors will certainly miss her in our board meetings following the end of her current term, she remains a strong strategic voice and collaborator with WeightWatchers.”
Struggling business
The move away from WeightWatchers occurs amid a challenging landscape for the company. The weight-loss industry is witnessing a significant shift, with drugs such as Ozempic and Wegovy, originally designed for diabetes treatment, gaining popularity.
This shift has led to a national shortage of these once-weekly injections, impacting WeightWatchers’ competition and potentially influencing its recent financial losses.