Updated January 24th, 2024 at 13:12 IST
Tata Digital, Zomato-backed Cult.fit lays off around 150 employees
The latest layoffs come on the heels of the company's efforts to reposition itself in the market post-pandemic.
Cult.fit layoffs: Bengaluru-based health and wellness platform Cult.fit, backed by Tata Digital, has laid off approximately 150 employees in an attempt to bolster profitability in the fiscal year 2025, Entrackr reported, quoting sources. The layoffs have reportedly affected employees across various departments, ranging from senior to mid-level positions, have been impacted, the report said.
While a company spokesperson stated that the layoffs were part of a "regular annual operating planning process" and intended to streamline operations by eliminating redundant positions, sources mentioned in the report highlighted that the primary motive behind the decision was to extend the runway and cut costs.
Cult.fit, formerly Cure.fit, faced significant challenges during the pandemic, leading to the termination of around 800 employees and the permanent closure of numerous fitness centres nationwide in May 2020. Despite the setbacks, the company has been striving to recover, and in June 2021, it became part of Tata Digital through a strategic deal.
In December 2021, Cult.fit secured $145 million in a funding round led by Zomato, indicating continued investor confidence in the company's potential. Tata Digital also made a substaintial investment of Rs 546 crore in Cult.fit in 2021. To further diversify its offerings, the health and wellness platform acquired a majority stake in F2 Fun & Fitness in February 2022, becoming the master franchise partner for Gold’s Gym in India.
The latest layoffs come on the heels of the company's efforts to reposition itself in the market post-pandemic. In FY23, Cult.fit managed to reduce its losses by 20 per cent, amounting to Rs 551 crore compared to Rs 688 crore in FY22. Moreover, its operational revenue witnessed a substantial surge, increasing 3.2 times to Rs 694 crore from Rs 216 crore in FY22.
Despite the challenges, Cult.fit remains optimistic about its future, aiming to enhance productivity and create long-term value for stakeholders through the recent workforce reduction.
Published January 24th, 2024 at 13:12 IST