Amazon-backed Tonal laid off 35% of its workforce

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Amazon Backed Connected Gym Equipment Manufacturer Tonal reportedly cuts 35 percent of his labor forcethat affect all levels of its business.



According to CNBCthe company employs about 750 people, compared to just over 110 before the Covid-19 pandemic, Chief Executive Officer Aly Orady said in an interview.

Orady also stressed the need to be profitable, especially as the company plans to go public.

According to the CEO, Tonal has not been profitable in the past. But the job losses will put the company on track to monetize within months.

Tonal, which sells wall-mounted exercise equipment for $3,495, experienced rampant growth in 2020 and 2021 as consumers were stuck at home and looking for ways to work up a sweat.

But for now Tonal is stepping on the brakes. It joins a list of companies — including competitor Peloton — that are cutting workforces to reduce costs and adapt to new levels of consumer demand for their products.

At the same time, companies are grappling with a red-hot inflation of everything from commodities to fuel to employee salaries, and many are preparing for an economic slowdown, even if a recession is uncertain.

“As we head into a recession — and many of us think we’re headed for a recession — it’s really important that we become a company that’s here for the long haul,” Orady said.

“What we’re doing is effectively moving from a hyper-growth company… to more of a sustained-growth company,” Orady added.

Tonal has not disclosed exactly how much money it plans to save from the layoffs. It also did not say whether valuation in private markets has been adjusted.

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