Zomato-backed Cult.fit lays off 150 employees to mitigate cash burn

24 Jan 2024 , 10:26 AM

Fitness Unicorn Cult.fit has laid off between 120 and 150 staff in an effort to minimise costs. According to sources, the decision had the greatest influence on staff at the mid to senior levels.

Cult.fit made the choice to slash expenditures in order to reduce its monthly cash burn and improve its financial situation. According to insiders, the unicorn, which has backers such as Tata Digital and Zomato, is now burning roughly Rs 15 crore in cash.

Cult.fit is also realigning its business approach to become an offline-heavy gym firm, shifting away from its former brand as a tech-enabled fitness startup. Employees from Sugar.fit, Carefit, Cultfit, and other departments were laid off as a result of the company’s decision to refocus its operations.

Cult.fit was previously known as Cure.fit, and it operates various brands under that name.

As part of our routine annual operational planning, we’ve eliminated certain redundant positions to streamline our operations. The objective is to enhance productivity and position ourselves for complete profitability in the fiscal year 2025. We’ve undertaken this decision after careful consideration, prioritizing the creation of long-term value for our stakeholders, as stated by a company representative.

For feedback and suggestions, write to us at [e-mail]