In May 2020, Indian gym and wellness startup cure.fit faced a significant setback due to the coronavirus lockdown, resulting in the layoff of around 800 employees across the country. As we dive into the details of what happened and why, we'll also discuss the potential future impact of these layoffs on the company and its standing in the industry.
Following the layoffs, several cure.fit employees took to social media to protest the company's actions. The downsizing affected various roles, including trainers and housekeeping staff from its fitness classes platform, Cult.fit. The company cited the ongoing lockdown and its impact on their business offerings as the primary reason for the layoffs.
As a result of the pandemic, cure.fit closed operations in small towns in India and the UAE. The company's founders took a 100% pay cut, while the management team and other staff members faced pay reductions of 50% and 20-30%, respectively. Severance packages and extended health insurance were provided to the affected employees and their families.
These layoffs and downsizing efforts may have significant consequences for the affected employees and the availability of fitness classes and services provided by cure.fit. The company's decision to close operations in small towns and the ongoing impact of the pandemic on their business offerings could also have long-term implications for their growth and expansion plans.
The decision to lay off employees at Cure.fit was primarily driven by the economic pressures caused by the COVID-19 pandemic. The lockdown measures affected all of the company's business offerings, leading to the closure of operations in small towns in India and the UAE. The company needed to adapt to the current situation, which resulted in internal restructurings and pay cuts across all levels.
While the broader industry and economic trends are not explicitly mentioned, it's clear that the pandemic has had a significant impact on the fitness industry as a whole. Cure.fit provided a severance package to all affected employees, including extended health insurance for them and their families, and committed to assisting in out-placing these employees in the coming days.
Cure.fit has recently undertaken layoffs as part of its strategy to streamline operations and transition more towards digital offerings. This move is designed to adapt to the changing fitness landscape, exacerbated by the COVID-19 pandemic, which has accelerated the shift towards online fitness classes and digital health solutions. Cure.fit plans to enhance its digital platform and has introduced new services like grocery delivery, which aligns with its goal to become a comprehensive health and wellness provider online.
These adjustments aim to position Cure.fit for sustained future growth by capitalizing on the increased demand for remote and digital health services. As Cure.fit refocuses its business model, it has also made the decision not to reopen several of its physical fitness centers in smaller cities, further pivoting towards a digital-first approach
The future impact of Cure.fit on the fitness industry may be shaped by its decision to move classes online and focus on digital offerings in response to the COVID-19 pandemic. The layoffs at Cure.fit highlight the challenges faced by the fitness industry due to the pandemic, with closures of fitness centers and downsizing of employee bases indicating the financial strain experienced by companies in the industry.
