- Health and fitness company cure fit has downsized its operations and laid off trainers at its gyms in both Indian and Delhi tier-2 markets, and in the UAE
Health and fitness company cure.fit has downsized its operations and laid off trainers at its gyms in both Indian and Delhi tier-2 markets, and in the UAE, citing a business downturn due to the coronavirus pandemic said two people aware of the growth.
In a statement Monday, the Bengaluru-based company announced the layoffs. Cure.fit said that approximately 90 percent of its trainers in its cult.fit gym business was moved to a variable pay model to “tide over the crisis.” The fitness company said that it will start repurposing its business to digital wellness deals like tele-consultants to provide medical services at home.
“We have downsized our number of workers across markets where we have shut down operations and implemented pay cuts across rates. The founders have taken a 100 percent pay cut, the management team 50 percent, and the majority of the workforce will have a 20-30 percent reduction based on seniority, “cure.fit said in its statement.
The company said it is setting up an emergency fund for workers impacted by the layoffs and it will have expanded health care for employees and their families.
Company verticals for cure.fit include food distribution (through its Eat.fit brand), physical exercise (cult.fit), mental health (mind.fit), primary care (care.fit), and exercise apparel (Cult Sport) on one platform (app). The company ran more than 200 cult.fit fitness studios in seven cities across India.
To generate sales, the company relies mainly on subscriptions to its gym and food delivery services, and many cure.fit customers will now have to turn to digital means to continue using those products. Since the country went into lockdown in March, the fitness startup has provided live workout sessions on its app and website.
“We’re ramping up our digital fitness offerings to help members stay fit and tele-consultants have been set up to provide home medical services. We are also doubling on health food & critical home delivery while maintaining stringent hygiene standards across all our kitchens, “said the company.
Cure.fit was created in 2016 by Mukesh Bansal, co-founder of fashion retailer Myntra, and Ankit Nagori, former Flipkart Chief Executive Officer. To date, the company raised more than $400 million from investors including Temasek Holdings, Accel Partners, Kalaari Capital, and Chiratae Ventures India. Cure.fit is estimated at more than $500 million.