Health and wellness platform Cult.fit (formerly Cure.fit) has laid off about 150 employees. This is the first layoff at the Bengaluru-based firm in three-and-a-half years.
According to sources, the layoffs have affected employees across the department.
“130-150 senior to mid-level employees were affected in the exercise,” said a source requesting anonymity.
Sources stressed that the layoffs are mainly to increase runways and cut costs. However, the company has denied any such reasons.
A company spokeswoman said in a statement that it had “reduced some redundant positions to streamline operations.” The move is part of a “regular annual operating planning process.”
“…this aims to improve productivity and set us up for full profitability in FY25. We have done this with thoughtful consideration and in the interest of creating long-term value for our stakeholders,” the spokesperson said.
Talk of layoffs at Cult.fit first appeared on the anonymous social media platform Grapevine on Monday.
Battered by the pandemic, Cult.fit laid off nearly 800 workers and permanently closed many of its fitness centers across the country in May 2020. Cult.fit’s fitness segment includes the business of maintaining and operating fitness centers and offering a variety of workouts.
In June 2021, Cult.fit became a part of Tata Digital after signing a strategic agreement with the Tata subsidiary. Later in December 2021, the startup raised $145 million in a round led by Zomato.
To broaden its horizons, Cult.fit has acquired a majority stake in F2 Fun & Fitness to become the master franchise partner for Gold’s Gym in India in February 2022.
It appears the company is trying to rebound from the pandemic-driven shock. In FY23, it narrowed its losses by 20% to Rs 551 crore in FY23 from Rs 688 crore in FY22. Moreover, revenue to operations grew 3.2X to Rs 694 crore from Rs 216 crore in FY22.
