The Bengaluru-based start-up Curefit has confirmed that it has laid off hundreds of its employees and has cut salaries due to the lockdown amid the novel coronavirus outbreak in the world. The company plans to downsize its operations.
In a statement, the company said that it has also implemented salary cuts across different levels along with laying off employees. The co-founders have accepted a 100 percent cut in their salaries. The management team and other staff reportedly are taking a cut of 50-20 percent pay cut in order to cut down the costs of the company. The company’s statement read,
“Given the current pandemic and restrictions across the country, our business is going through significant changes. The lockdown has affected our business offerings and we do not see the situation improving for some time. This unprecedented situation has forced us to close operations in small towns in India and the United Arab Emirates.”
90 percent of trainers to stay
The company has its footing in two-tier cities like Amritsar, Kochi, Kota, Chandigarh, Jaipur, and Surat. Reuters was the first to report that the company has laid off as many as 800 employees. Although the company hasn’t clarified the number of people being laid off. The company has even shut down its fitness centers which has been functioning under the brand name of Cult.Fit. Their cloud kitchen outlets under the brand name Eat.Fit has also been closed in various places. As many as 18 of their Eat.Fit outlets have been up for sale in cities like Chandigarh, Jaipur, Ahmedabad, and Vadodara.
The company has been led by Mukesh Bansal, formed Myntra cofounder, and Ankit Nagori who worked in Flipkart as a top executive. Under their leadership, the company has recently raised a whopping 832 crore rupees by Singapore government-backed Temasek. The company said,
“As many as 90 percent of the Cult.Fit trainers continue to be with us and have been moved to a fixed plus variable model to tide over the crisis. All employees part of the downsizing has been provided with a significant severance package to help them with the current situation, including extended health insurance for them and their families.”
A number of employees, after being laid off or offered a salary cut, took to social media to express their reaction.