San Francisco, California-based Tonal, a developer/operator of an online platform designed to offer personalized fitness programs, has announced a strategic restructuring and comprehensive cost-reduction program, including headcount reductions and curtailment of advertising to reduce customer acquisition costs.
The headcount impact across all departments is estimated at 35% of the company's workforce, approximately 260 employees.
According to a company spokesperson, “Tonal is prioritizing becoming a self-sustaining business with an emphasis on profitability. While sales have continued to grow at an unprecedented rate, so have the costs of our business, particularly in light of the macroeconomic climate and global supply chain challenges."
"To make it through what’s ahead, we must prioritize becoming a self-sustaining and profitable business. Becoming self-sustaining requires us to scale back significantly, both operationally and in our headcount."
O"ur costs, growth, and investment levels were shaped by and built for a hyper-growth trajectory. We owe our members and our shareholders, including past and current employees, to be here for the long haul beyond the present economic downturn."
"This wasn’t an easy decision, but it was the responsible one, as it will allow us to honor our commitment to best serve our members as a healthy business for years to come while growing at a more sustainable rate.”
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?