Gwyneth Paltrow's wellness empire Goop has experienced further turbulence, laying off around 20 staff members this week with the rationale of 'profitability and AI,' as reported by Puck. This comes just 18 months after significant layoffs at the company.
Recent Layoffs at Goop
In late 2024, the 53-year-old entrepreneur's wellness and lifestyle brand implemented two rounds of layoffs within two months. In September 2024, about 40 people were cut from the 216-person staff, accounting for 18 percent of the e-commerce site. Additional cuts were made in late October 2024, affecting around 10 people, equating to less than 6 percent of staff across several divisions, including beauty, programming, engineering, and creative departments.
Now, Goop has let go of approximately 20 staff members, citing a pivot to AI and profitability concerns. Daily Mail has reached out to Paltrow and Goop for comment but has yet to receive a response.
Allegations of AI Justification
According to the tip line on Emily Sundberg's Feed Me Substack, it is alleged that the layoffs were 'justified via pivot to AI workflow,' with statements about a lack of profitability. It was also claimed that Paltrow led the town hall meeting making the announcement.
Goop's History and Challenges
The Oscar-winning actress, who also serves as CEO of Goop, founded the company as a weekly email newsletter in September 2008. It later expanded into e-commerce, collaborating with fashion brands, hosting pop-up shops, and wellness summits, as well as launching a print magazine, podcast, and docuseries on Netflix.
However, the wellness and lifestyle brand has faced difficulties in recent years. When the two cuts were made in 2024, a Goop spokesperson told Business Insider that the goal was to 'optimize operational efficiency and revenue growth in our key verticals of beauty and fashion.' Paltrow stated that the 2024 layoffs had put Goop 'back in growth mode,' but it appears more cuts were necessary.
Financial Performance
Few details exist on the company's solvency, with a spokesperson simply stating that revenue grew year on year in 2023, with 2024 looking like another year of growth. The spokesperson said Goop Beauty revenue had increased 21 percent compared to the previous year, following a massive 42 percent boost in 2023, while G. Label revenue is up 45 percent.
Previous Layoffs and Cultural Issues
The last round of cuts before the two in 2024 occurred in 2021, when it is believed at least 140 employees, including high-level executives such as a chief financial officer, chief technology officer, and chief risk officer, left the company over a period of two years. While the pandemic accounted for some staffing loss, ex-staffers noted that Goop's high turnover problem predated COVID-19 layoffs, citing stingy pay, a 'taxing culture,' and Paltrow's habit of picking favorites and then seemingly changing her mind.
Other ex-employees who complained about the company on Glassdoor slammed the 'bullies' and 'mean girls' who rely on 'fear-based management,' saying Paltrow in particular was 'wanting to spend her days trying on clothes when the company desperately needed a real CEO.'
Controversial Products and Funding
Since its launch over 17 years ago as a weekly newsletter, Goop has generated both fans and critics, with some eyebrow-raising products including sex dust, libido-boosting supplements, vampire repellent, and scented candles—one of which was billed as smelling like Paltrow's orgasm. The actress famously listed a $75 candle named 'This Smells Like My Vagina' on her online Goop shop, revealing that the geranium, citrus bergamot, and cedar-scented candle started as a joke. The product description stated: 'This candle started as a joke between perfumer Douglas Little and GP—the two were working on a fragrance, and she blurted out, 'Uhhh..this smells like a vagina'—but evolved into a funny, gorgeous, sexy, and beautifully unexpected scent.'
The actress also previously advised readers to purchase a $15,000 24k gold vibrator and vaginal jade eggs. Despite controversies, Paltrow has raised more than $140 million in capital from blue-chip firms. However, she has expressed discomfort with accepting so much venture capital funding. 'You start fielding questions about scale, especially if you've taken VC money. And that's where I think it can be very, very difficult. And frankly, where I've made mistakes along the way,' she said during a Forbes conference in September 2024.
Recent Ventures
More recently, Paltrow has launched Goop Kitchen, an extension of the brand that is a health-focused restaurant serving food only for takeout and delivery.
