As part of cost-cutting measures, Cure.fit, the Bangalore-based gym and wellness startup, has laid off almost 800 of its employees — including fitness trainers and centre managers — across its 130+ centres in the country. The lockdown following the coronavirus outbreak has impacted business and forced the Company to close some of its centres in the smaller towns/cities.
Endorsed by celebrities, the Company’s Cult.fit business was rather popular owing to its group fitness sessions. Less than a year ago, Cure.fit had opened centres in Dubai as well. However, the lockdown has forced the Company to shut many of its centres in the small towns of India, as well as the UAE.
The remaining employees are expected to face pay cuts, across levels. While the founders are reported to have taken a 100 per cent pay cut, the managers have taken a 50 per cent cut, while the rest of the employees, based on their level/position, have had their salaries deducted by about 20 to 30 per cent.
The employees are disappointed at the way they were asked to quit without any warning or time to prepare. The staff members were offered the option to either take 45 days’ pay till June 15 and consider May 1 their last working day, or work till June 15 and receive 45 days’ pay on June 30. However, the employees’ insurance cover will be extended up to the end of July.
It is reported that the Company’s workforce across the country was about 5,000 strong, inclusive of the employees at those divisions of Cure.fit and Eat.fit involved in providing medical services to customers, as well as healthy meals, such as snacks, desserts, groceries, supplements and health drinks.
Cure.fit was founded in 2016, by two former Flipkart executives, with financial backing from Temasek Holdings of Singapore. The Cure.fit app for mobile devices makes it convenient for users to ensure holistic health through enjoyable group classes, offers healthy meal suggestions and allows access to primary care, all through a single app. Its digital fitness platform, Cult.live, had become highly popular during the lockdown.