Gym and wellness startup Cure.fit, which runs Eat.fit, Care. fit, Mind.fit, and Cult.fit offering a broad range of services from health and diagnosis to cafes and food delivery has decided to close operations in smaller tier-2 markets in India and the UAE due to the impact on the business from the COVID-19 pandemic.
Cure.fit has also fired around 800 of its employees and others will face pay cut from 20% to 30%. Its founders and management team will take 100% and 50% pay cuts respectively.
Founded by Myntra co-founder Mukesh Bansal and former Flipkart chief business officer Ankit Nagori, Cure.fit is backed by Temasek Holdings of Singapore. The latest move of this company comes just a month after it raised Rs 832 crore from investors such as Temasek, Accel Partners, Chiratae Ventures and more.
The start-up operates 200 Cult.fit fitness studios across seven cities in India. It said that 90% of its trainers in Cult.fit gyms have been moved to a variable pay model.
“We have downsized our employee base across markets where we have shut operations and have initiated pay cuts across levels. 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 to 30 per cent,” Cure.fit said in a statement.
Cure.fit is setting up a Rs 2 crore emergency fund to support affected employees. All employees affected by the downsizing have been given a severance package and extended health insurance.
“All employees part of the downsizing have been provided with a significant severance package to help them with the current situation, including extended health insurance for them and their families. Further, we will provide our full assistance in out-placing them in the coming days. We have also created an emergency fund of Rs 2 crore to support affected employees in the coming months,” the company added.