Zoe staff cuts reflect industry-wide customer churn challenge

Personalized nutrition (PN) thought-leader Mariette Abrahams noted the update reflects the challenge PN firms face in retaining customers at a sustainable price-point – a challenge further exacerbated by the economic crisis.ย ย 

The consumer data focused start-upย launched in 2017, opening its membership only two years ago andย gaining a name for itself as a science-backed holistic health support service, utilizing stool testing kits, CGMs, daily diet diaries and lifestyle questionnaires to provide gut health focused nutrition advice.ย 

It sells gut microbiome testing kits for ยฃ300 and a monthly subscription to a diet advice and tracking app andย was reportedly theย UKโ€™s fastest growing healthtechย by headcount in 2023 (Sifted).

But Jonathan Wolf, co-founder and CEO at Zoe, posted on his LinkedIn page on April 11 informing that afterย experiencing huge growth in 2023 and inflated growth forecasts, the team was over-expanded and costs need to be cut.

โ€œWeโ€™ve seen extraordinary growth since launching ZOE membership in the UK two years ago,โ€ he stated. โ€œWe spent the last year desperately trying to catch up with demand, as we welcomed 100,000 new members. Unfortunately, itโ€™s now clear that in doing this, we over-expanded our team over the last six months.

“We now have to make difficult decisions to reduce our costs by around 20%, which will impact some of our team. I take full responsibility for this.โ€

He added that start-up success is โ€œoften two steps forward and one step backโ€ and he is confident in the company’s outlook.

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