Smart home gym-maker Tonal is slashing 35% of its workforce — adding to a growing list of connected fitness companies restructuring their businesses, according to CNBC.
Tonal — backed by a star-studded group of investors including Serena Williams, LeBron James, Steph Curry, and others — is cutting its workforce to become profitable as it aims to go public.
- The fitness company currently employs roughly 750 people.
- Before the pandemic, its workforce stood at just over 110 employees.
- The company has yet to become profitable since its launch in 2015.
- It also plans to cut back on advertising to alleviate customer acquisition costs.
Tonal benefited from high demand for connected fitness equipment during the pandemic. In March 2021, it completed a $250 million Series E funding round at a $1.6 billion valuation.