Curefit: In the letter, Mukesh and Ankir said that all employees were paid full salaries for the last three months- March, April, May. This leads to a massive burn of over $10 M without any profits from consumers.
later than reports of Curefit firing scores of staff and trainers without prior notice, Mukesh Bansal and Ankir Nagori, the fitness platform’s founders have conveyed their stand to the employees and to ‘set the record straight’.
Following the layoff, employees went to social media to express their disagreement over the same on curefit.
In response to the disagreement of the employees, the company said that “caught between doing our best to serve our customers during the lockdown, trying to save as many jobs as possible while also ensuring long term viability of the business”
In their letter, they said, “That is 3 months of massive burn totaling over $10M without any revenue whatsoever from customers… We made the commitment to teams that they will be paid for these 3 months no matter what, and we’ve stood by that while we processed the larger macro-economic condition”
The economic fight of the Coronavirus pandemic, the founders said they are decline 100% of the salary for one year.
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In which all senior management is taking 50% cuts, followed by central teams will take 20-30% cut from starting June. However, there is no modification in compensation of operations staff- food delivery and doctors of Care.fit.
These pay cuts help the company to save over Rs 8 crores a month. They added that “We have also reduced our marketing significantly, saving the company another Rs 10 crores a month,”
The recent letter stated that “We took a call to shut down our business in small towns that affect only 5% of our revenue but had a large cost base. We are letting go of these employees and excess staff in other cities which is less than 300 trainers,”.
The company will offer these employees with nearly two months’ salary, extended health insurance, and will rehire them when the company ramps up.
Backlash over PM Care’s fund
On Clarification over the backlash, the company received Rs 5 crores for its donation to the PM Cares fund and ACT grants, it said that half of these are added by management and founder and the other half by the company. This amount would not even cover 14 days’ salary of trainer and less than 5 days of the pay bill of the company.
Curefit stated that the net monthly bill for celebrities is Rs 1 crores per month, which is hardly 1 day of its total wage bill and less than 3 days salary of the training staff.