Mukesh Bansal’s Cure.Fit shuts down partial operations, lays off workers, cut salaries to survive Covid

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Updated: May 6, 2020 8:15:18 PM

Founded in 2016 by Myntra co-founder Mukesh Bansal and former Flipkart executive Ankit Nagori has reportedly axed 800 employees. It had expanded to over 130 locations in India had launched Dubai operations in June last year.

Cure.Fit said that laid-off employees have been provided with a “Significant severance package”.

Mukesh Bansal led healthcare and fitness startup Cure.Fit has shut down its business in small towns in India and the UAE, laid-off employees, initiated salary cuts across levels as a consequence of Covid-19, the Temasek-backed company said in a statement recently. Moreover, founders including Myntra co-founder Bansal and former Flipkart executive Ankit Nagori have taken full salary cut while the management team has taken 50 per cent cut and “rest of the staff depending on seniority have a reduction of 20 to 30 per cent.” As per a Reuters report, the company, founded in 2016, has axed 800 employees. Cure.Fit had expanded to over 130 locations in India had launched Dubai operations in June last year.

Cure.Fit said that laid-off employees have been provided with a “Significant severance package” including extended health insurance for them and their families. The company will offer support in out-placing them in the coming days even as it announced setting up of an emergency fund of Rs 2 crore to support employees impacted in the coming months. “90% of the Cult trainers continue to be with us and have been moved to a fixed plus variable model to tide over the crisis,” the company said.

Also read: Ola, Uber, other cab hailing apps may suffer severe Covid dent; personal car sales may benefit

This led to a number of disgruntled customers taking to Twitter to express their dissatisfaction.

However, the company said that it has extended timeline for Cult memberships for as long as it takes to exit the lockdown. Cure.Fit had contributed more than Rs 5 crore to PM Care Fund, ACT Funds etc.

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