About 150 workers were let go by the health and wellness platform Cult.fit (formerly Cure.fit). At the Bengaluru-based company, this will be the first layoff in the previous three and a half years.
According to sources, the layoffs have affected workers in all departments.
“Anywhere between 130-150 employees from senior to mid-level were impacted in the exercise,” said one of the sources requesting anonymity.
The main goals of the layoffs, according to sources, are to reduce expenses and increase the runway. The company has refuted any such explanations, though.
“Reduced some redundant positions with the aim of streamlining operations,” a company spokesperson said in a statement. A “regular annual operating planning process” underpins the relocation.
“…This is aimed at improving productivity and setting us up for full profitability in FY25. We have done this with thoughtful consideration and with the interest of creating long-term value for our stakeholders,” the spokesperson said.
On Monday, the anonymous social media platform Grapevine hosted the first conversations regarding Cult.fit layoffs.
In May 2020, Cult.fit, battered by the pandemic, laid off about 800 staff members and closed many of its fitness facilities nationwide. In addition to providing a variety of workouts, Cult.fit’s fitness segment also manages and operates fitness centers.
Following the signing of a strategic agreement, Cult.fit joined Tata Digital in June 2021. Zomato led a $145 million fundraising round for the startup later in December 2021.
In an effort to expand, Cult.fit acquired the majority of F2 Fun & Fitness in February 2022 in order to take over as Gold’s Gym’s master franchise partner in India.
It seems that the business has been working to recover from the shock caused by the pandemic. Its losses in FY23 dropped from Rs 688 crore in FY22 to Rs 551 crore in FY23, a 20% decrease. Furthermore, from Rs 216 crore in FY22 to Rs 694 crore in FY23, operations from revenue increased 3.2X.
