I don't see life returning to normal, critical to managing costs: founders of Curefit
BENGALURU: After laying off about 10% of your staff and closing operations in small towns and the UAE, Curefit Mukesh Bansal and Ankit Nagori have said they don't see the environment around them returning to normal until they are vaccinated. found.
, is one of the many startups whose deal has been directly affected by the virus outbreak. The company manages 230 gyms across India and has offline food outlets as well as cloud kitchens to serve online orders. The company plans to focus on its online offerings in the future.
“We don't see life returning to full normal until a vaccine is found and the entire globe is vaccinated. Till then, we will have a new normal with limited movement and severe restriction to mass gatherings, which include group workout formats like Cult. In such a situation, it is critical that we manage our costs for the long-run viability of the deal . If we maintain the exact same cost structure while revenue continues to be negligible, it will be grossly unfair to all stakeholders including employees who have done so much to build the deal ,” the founders wrote to their staff.
Curefit laying off about 800-1,000 people is one of the biggest layoffs for a well-funded startup in India.
“Although our earnings dropped to almost zero from more than Rs 70 million a month, we have paid full salaries to all employees during the months of March, April, and even May for many full-time employees. That's 3 months of massive burning totaling more than $ 10 million without any revenue from customers, the Bengaluru-based startup said, explaining why it has had to take recent action, such as laying off employees and announcing pay cuts in all areas.
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%. According to the founders, this will save Rs 8 crore per month for the company and has further reduced marketing expenses to save another Rs 10 crore per month.
Amid all this, the company was also facing criticism of how it contributed Rs 5 million to the PM Cares fund, but then had to lay off employees. Half of these funds are contributed by founders and managers and the other half by the company. These funds would not cover even 14 days of the coach's salary and less than five days of the company's entire salary bill, ”wrote the founders, explaining their decision to donate to the PM Cares Fund and other grants that work to resolve the virus outbreak. .
The company did not immediately respond to the TOI inquiry.