Health and wellness platform Cult.fit (formerly Cure.fit) has laid off around 150 employees. This will be the first instance of layoff at the Bengaluru-based company in the past three-and-a-half years.
The layoffs have impacted employees across departments, as per sources.
“Anywhere between 130-150 employees from senior to mid level were impacted in the exercise,” said one of the sources requesting anonymity.
Sources emphasized that the layoffs are largely done to extend the runway and cut costs. However, the firm has denied any such reasons.
A company spokesperson said in a statement that it has “reduced some redundant positions with the aim of streamlining operations.” The move is part of a “regular annual operating planning process.”
“…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.
The discussions around layoff at Cult.fit first appeared on anonymous social media platform Grapevine on Monday.
Bruised by the pandemic, Cult.fit fired around 800 employees and permanently closed many of its fitness centres across the country in May 2020. Cult.fit’s fitness segment includes the business of maintaining and operating fitness centers, and offers a mix of workouts.
To widen its horizon, Cult.fit picked up a majority stake in F2 Fun & Fitness to become the master franchise partner for Gold’s Gym in India in February 2022.
It appears that the company has been making efforts to re-emerge from the pandemic-driven jolt. In FY23, it reduced its losses by 20% to Rs 551 crore in FY23 from Rs 688 crore in FY22. Moreover, operations from revenue surged 3.2X to Rs 694 crore from Rs 216 crore in FY22.