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.
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.
This led to a number of disgruntled customers taking to Twitter to express their dissatisfaction.
It’s a shame that cult did it. U have fired some of the best trainers. Unfortunately cult is no different from corporates, where those who are in good terms with their bosses survive. Anyways this is only going to backfire cult and you end up losing customer goodwill! #Iamnotcult
— Ashwin J. Baliga (@baliga_ashwin) May 4, 2020
You should have saved your employees in these tough times then donate to PM Care, I understand the tax benefits but in health industry especially in times of Pandemic …..getting a new job is so difficult for many trainers and helps….. I am now a disspointed cult member.
— Satyajith (@satyajithpinku) May 4, 2020
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.