CureFit Lays off hundreds, cuts pay across levels

Bengaluru: Curefit has laid off hundreds of employees, cut salaries across levels as it downsizes its operations, as a result of the ongoing Covid-19 pandemic, the company said in a statement. Along with the layoffs, the company has also implemented salary cuts across levels.

While the company founders will forgo their salaries, the management team and other staff would be taking a 50-20% pay cut as part of a plan to cut costs, the company said. “Given the current pandemic and restrictions across the country, our business is going through significant changes.

The lockdown has affected our business offerings and we do not see the situation improving for some time... This unprecedented situation has forced us to close operations in small towns in India and the UAE.”

Apart from metro cities, the company had a presence in cities like Indore, Amristsar, Kochi, Kota, Chandigarh, Jaipur, Surat among others. Reuters first reported on Monday that Cure.Fit has laid off as many as 800 employees.

However, the company did not offer any details on how many people were being let go as part of the retrenchment. EThas learnt that aside of shuttering its fitness centres under Cult-.Fit, the company has also shut down a number of its cloud kitchen outlets which are branded as Eat-.Fit.

The company, led by former Myntra cofounder Mukesh Bansal and former top Flipkart executive Ankit Nagori, recently raised `832 crore led by Temasek, the Singapore government-backed investment company. “As many as 90% of the Cult.Fit trainers continue to be with us and have been moved to a fixed plus variable model to tide over the crisis.

All employees part of the downsizing have been provided with a significant severance package to help them with the current situation, including extended health insurance for them and their families,” the company said.

A number of disgruntled employees took to social media to express their reaction post the layoffs and salary cuts. ET had earlier reported that Eat-.Fit has been scouting for buyers as it put as many as 18 of its facilities up for sale in cities like Chandigarh, Jaipur, Ahmedabad, and Vadodara.