Cult fit layoffs- Fitness unicorn to terminate 150 employees
Cult.fit, the fitness unicorn backed by notable investors such as Zomato and Tata Digital, has recently implemented a reduction in its workforce, leading to the termination of around 150 employees. This move reportedly aims to mitigate cash burn, with the current estimate standing at approximately Rs 15 crore, as disclosed in a report on Tuesday.
Founded in 2016 by Mukesh Bansal and Ankit Nagori, this Bengaluru-based unicorn has been a trailblazer in delivering a comprehensive range of fitness services and products through its two prominent brands, cult.fit and cult.sport.
Insiders have revealed to Moneycontrol that the decision to downsize the workforce is part of a broader strategy to alleviate the current cash burn challenges. Cult.fit, with its mission to make fitness enjoyable, convenient, and accessible, offers diverse options, including group workouts, online classes, sports facilities, and personalized fitness solutions across various centres and partner gyms nationwide.
Cult.fit has displayed financial resilience despite the recent reduction in staff. In the preceding fiscal year, ending in March 2023, the company witnessed a 20% loss reduction. Additionally, its revenue from operations saw a remarkable surge, rising from Rs 216 crore in FY22 to Rs 694 crore in FY23, as per consolidated financial statements filed with the Registrar of Companies.
This operational streamlining aligns with Cult.fit’s commitment to maintaining sustained financial health and pursuing strategic growth. The fitness unicorn remains steadfast in its dedication to making fitness accessible and enjoyable for individuals nationwide.
As of now, the company has not issued an official statement in response to these recent developments.
Stay connected