Mukesh Bansal-led Curefit lays off employees as it restructures business to hit profitability
The Tata Digital-backed fitness firm has set its eyes on achieving profitability by FY25, according to the company.
Tata Digital-backed fitness firm—known for the Cultfit, Sugarfit and Carefit brands—has let go of some employees as it attempts to streamline operations and achieve profitability.
The move aims to help the company hit profitability by FY25, Curefit said in response to YourStory’s query.
“As part of our regular annual operating planning process, we have reduced some redundant positions with the aim of streamlining operations. This is aimed at improving productivity and setting us up for full profitability in FY25. We have done this with thoughtful consideration and with the interest of creating long term value for our stakeholders,” a company spokesperson said.
The layoffs are said to have impacted up to 120 employees, according to a report by Inc42.
In October 2022, Cultfit’s Business Head Naresh Krishnaswamy and Chief Financial Officer Bishnu Hazari told YourStory that that the company's direct-to-consumer segment, which offers fitness products such as equipment, nutraceuticals, and sportswear, has done “tremendously well” over the last few months.
The company was looking to list over the subsequent 12-18 months, according to Hazari and Krishnaswamy. They said that both the fitness services and product segments were on track to turn profitable on an EBITDA level.
Cultfit is also looking to realign its business strategy to transition into an offline-focused gym brand from its technology-enabled business model, according to a report by Moneycontrol.
Edited by Swetha Kannan