Curefit dismisses 10%, reduces operations
Digbijay Mishra | TNN
Bengaluru: Delivery of Fitness to Food Curefit is laying off 800-1,000 people, about 10% of its total staff across the group. This would be one of the largest layoffs in the startup world as business is affected due to Covid-19. Affected employees include trainers, human resource executives, and staff training throughout the Cultfit business. Other major verticals of the startup, and Mindfit, have also seen cuts.
Started in 2016 by co-founder Mukesh Bansal and Flipkart senior executive Ankit Nagori, he runs 230 fitness centers across India and has offline food, in addition to serving online orders. Since the Covid-19 expansion in India, these businesses have been directly affected. Curefit plans to focus on its online offerings in the future. What is causing outrage among the employees, according to four sacked employees, is that they are verbally asked to resign with a payment of approximately 45 days. They will not tell us in writing that we have to resign or that the criteria are the same for everyone. I quit my studies to join Curefit and now we are forced to resign overnight. How will I earn a living? ”Said Anmol Mahawar, one of the Cultfit staff members.
Like her, many others face a similar situation, and a group of between 100 and 150 members of this staff are coming together to pressure the company not to take that step. They have formed a WhatsApp group, reviewed by TOI. Curefit did not respond to a TOI email inquiry. The four fired employees said they also started an online campaign against the company on Change.org, protesting what they see as an unfair move by Curefit. The company had closed a new round of financing of Rs 832 crore in March by Singapore's Temasek and other investors.
Cultfit trainers told TOI that the company recently enrolled celebrities for virtual classes and even donated Rs million to the PM CARES fund. But then, he is forcing his staff to resign and saying that if they don't, the company will not give them the 45-day severance package.
In a Twitter post, Curefit said it has retained 90% of its coaches in a more variable fixed payment model to overcome the crisis. We have reduced our employee base in the markets where we have closed operations and initiated wage cuts at all levels, he said. The founders have taken a 100% salary cut, while the same for the administration is 50% and the rest of the staff, depending on seniority, would see salary cuts of 20-30%. He added that he has created an emergency fund of Rs 2 million for affected employees.