Hims & Hers to Cut 4% of Workforce Following FDA's Wegovy Ban

Published 21 hours agoHIMS

Hims & Hers to Cut 4% of Workforce Following FDA's Wegovy Ban

Hims & Hers Health, a telehealth company, has announced plans to cut around 4% of its workforce, affecting 68 employees. This move comes in response to the U.S. Food and Drug Administration's decision to ban compounded versions of Novo Nordisk's GLP-1 weight-loss drug, Wegovy. The ban, effective from May 22, 2025, has already impacted the company's finances and triggered a significant share value drop.

The impact of the FDA's ban is notable, as Hims & Hers previously offered more affordable compounded versions of Wegovy, which had been a considerable revenue driver. Reuters reported that the company's stock value has decreased by 14% since the announcement. Despite this setback, Hims & Hers saw a 111% increase in year-over-year revenue during the first quarter of 2025, with sales from GLP-1 weight-loss drugs generating $200 million of its $1.5 billion revenue in 2024.

In response to the regulatory changes, Hims & Hers is seeking partnerships with Novo Nordisk to secure access to branded Wegovy for its patients. Simultaneously, the company aims to broaden its service offerings to new treatment areas including low testosterone, menopause, and sleep treatments. While implementing these strategic adjustments, Hims & Hers maintains plans to hire for roles crucial to its long-term growth, despite the current layoffs.

Share this article

Twitter Facebook LinkedIn

Recent Articles

Dell Projects Lower Revenue Amid Weak PC Demand

Dell Projects Lower Revenue Amid Weak PC Demand

8 minutes agoDELL

Dell Technologies is forecasting fourth-quarter revenue in the range of $24 billion to $25 billion, falling short of Wall Street's expectation of $25.57 billion. The shortfall is attributed to a decline in demand for traditional PCs and heightened competition from rival server makers, according to a report by Reuters. Adding to the challenges, Dell's Co-Chief Operating Officer Chuck Whitten has observed more cautious behavior among customers throughout the quarter, illustrating a tough sales environment. Furthermore, employee satisfaction within Dell has declined, with their annual "Tell Dell" survey revealing a significant drop in employee net promoter score from 62 to 48, as noted by Bloomberg. In response to these hurdles, Dell is implementing cost-cutting measures that include ongoing workforce reductions. The company remains focused on managing expenses in light of the subdued demand for PCs, aiming to navigate the difficult market conditions effectively.

Palantir Technologies Enters Strong 'Buy Zone' Amid Tariff News

Palantir Technologies Enters Strong 'Buy Zone' Amid Tariff News

38 minutes agoPLTR

Palantir Technologies has seen its stock price surge by about 18.2% following President Trump's announcement of a 90-day suspension of reciprocal tariffs for all nations except China. This move seems to have positively influenced investor sentiment, propelling Palantir into what is being referred to as a favorable 'buy zone.' Gurufocus.com highlighted this increase in stock value as a key development amid the changing market conditions. In terms of financial performance, analysts project significant revenue growth for Palantir, with quarterly sales estimated between $858 million and $862 million. This uptick represents a substantial 35.6% increase year-over-year, making the company an attractive prospect for many investors. Palantir's strategic focus on sectors like national security, immigration, and space exploration is also aligning well with anticipated federal spending increases, which could further strengthen its market presence. Furthermore, Palantir has secured a prominent $480 million contract to expand the Pentagon's AI battlefield intelligence program, Project Maven, underscoring its potent governmental ties. Despite these positive developments, some analysts from FT.com have flagged potential concerns around the company's high valuation relative to earnings, cautioning investors to weigh these factors carefully in their decision-making process. Overall, Palantir's strategic positioning and recent contract wins suggest it stands well-placed in the current political and economic landscape.

DoorDash Makes Bold Moves with Deliveroo and SevenRooms Acquisitions

DoorDash Makes Bold Moves with Deliveroo and SevenRooms Acquisitions

1 hours agoDASH

DoorDash is making headlines with its strategic push to dominate the food delivery industry by acquiring Deliveroo and hospitality software firm SevenRooms. The agreement to purchase UK-based Deliveroo for £2.9 billion ($3.9 billion) in cash, announced in May 2025, is a significant step for DoorDash, extending its reach across Europe, Asia, and the Middle East. This marks another major international expansion following the 2022 acquisition of Wolt Enterprises, Reuters reported. In addition to scooping up Deliveroo, DoorDash is also acquiring SevenRooms for $1.2 billion, as noted by AP News. This move is aimed at bolstering its merchant services and enhancing in-store sales capabilities, reflecting DoorDash's ongoing strategy of strengthening its service offerings. These acquisitions coincide with DoorDash posting a record first-quarter revenue of $3.03 billion, a 21% increase from the previous year, driven by a surge in delivery demand, particularly in grocery services. Highlighting DoorDash's success in expanding its market footprint, the company has also grown its subscription services, with DashPass and Wolt+ now boasting 22 million subscribers. CEO Tony Xu has articulated his focus on consolidating the market and scaling the company sustainably through these strategic acquisitions, underscoring the resilience of the food delivery sector.

GE Vernova Shines in Q1 2025, Copart Stock Hits New Low Despite Earnings

GE Vernova Shines in Q1 2025, Copart Stock Hits New Low Despite Earnings

In May 2025, GE Vernova emerged as a top performer in the industrial sector, showcasing impressive financial results for the first quarter. The company reported $10.2 billion in orders, marking an 8% organic increase, and achieved $8.0 billion in revenue, an 11% rise from the previous year. Net income saw a major turnaround to $0.3 billion, with an adjusted EBITDA of $0.5 billion at a 5.7% margin. Free cash flow improved to $1.0 billion, and the cash balance stood at $8.1 billion, with $1.3 billion returned to shareholders, according to GE Vernova's official reports. Reuters noted that GE Vernova is now a significant force in the power industry, being a leader in electrification and the manufacturing of turbines and wind components. This profitability upswing comes as energy demands rise, fueled by developments in AI, increased onshoring, and growing electricity consumption. Meanwhile, Copart Inc., reported solid financial results in the second quarter of fiscal 2025 with a revenue of $1.16 billion, up 14% year-over-year, and a net income of $387.4 million, a 19% increase. Their EPS of $0.40 surpassed expectations, and cash and cash equivalents climbed to $3.34 billion. Despite these strong figures, TechDows reported that Copart's stock hit a 12-month low, trading as low as $59.46, likely due to concerns over rising facility-related costs and possible future challenges.