Zomato-backed Cult.fit lays off 150 employees in cost-cutting drive
Cult.fit, a popular fitness company backed by Zomato, has laid off around 120-150 employees in an effort to cut costs and improve its financial standing. The majority of those affected are mid- to senior-level employees. As per Moneycontrol, the company's current monthly cash burn is around Rs. 15 crore, and the goal is to reduce it to about Rs. 10 crore.
Cult.fit's shift in business strategy
In addition to the layoffs, Cult.fit is shifting its business strategy by transitioning from a tech-enabled fitness start-up to a more traditional, offline-heavy gym company. Cult.fit was founded by Mukesh Bansal and Ankit Nagori in 2016. It has credible investors like Tata Digital, Temasek, and Zomato. Flipkart's Binny Bansal and actor Hrithik Roshan are among its angel investors. The company's revenue grew from Rs. 216 crore to Rs. 694 crore in FY23.
Cult.fit aims for full profitability in FY25
While Cult.fit has confirmed the layoffs, they did not disclose the exact number of employees affected. A company spokesperson told Moneycontrol that the firing is part of the annual operating planning process and the positions removed were 'redundant.' The company stated the decision will improve productivity and overall profitability along with creating long term value for stakeholders. Cult.fit raised $150 million in a funding round led by Zomato in 2021 to become a unicorn (company valued at over $1bn).
