Health and wellness start-up Cure.fit has laid off hundreds of its employees, shut down operations in the UAE and small towns across the country in the wake of the business disruption caused by the current pandemic, the start-up said in a statement. The number of employees being handed out the pink slip was not disclosed.
“The lockdown has affected all our business offerings and we do not see the situation improving for quite some time, considering the pandemic spread has affected all the markets we operate in. While we are doing everything we can to solve issues for our customers, we also need to adjust to the new realities and manage costs to ensure the long-term viability of the business. We have downsized our employee base across markets where we have shut operations and have initiated pay-cuts across levels,” the start-up said.
In addition to the metros, the start-up had established its presence in smaller cities like Surat, Kochi, and Chandigarh, among others.
The founders have taken a 100 per cent pay cut, the management team 50 per cent and the rest of the staff depending on seniority have a reduction of 20-30 per cent. Ninety per cent of the Cult.fit trainers continue to be with the start-up 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 severance package to help them with the current situation.
The start-up founded by former Myntra and Flipkart executives, Mukesh Bansal and Ankit Nagori, said it will provide full assistance in out-placing the employees who have been asked to resign. The start-up has also created an emergency fund of ₹2 crore to support affected employees in the coming months.
“We are ensuring our customers do not lose out and have extended unlimited pause for their CULT memberships for as long as it takes to exit the lockdown. We are ramping up our digital fitness offerings to support members stay fit, while tele-consultants have been introduced to provide medical services at home. We are also doubling down on home delivery of health foods and essentials, while maintaining rigorous hygiene standards across all our kitchens,” it said.