Fitness guru Kayla Itsines has revealed that her company has been forced to lay off staff and cut costs as people return to gyms post-COVID-19.
The 31-year-old launched her digital fitness platform Sweat in 2015, in partnership with her now-ex-fiancé Tobi Pearce.
More than 30 employees at the company’s Adelaide headquarters will be made redundant, bringing the number of local employees to just 45, down from nearly 100 at the company’s peak last year. The advertiser reports.
The company would not confirm or deny the exact numbers involved in the layoffs, and a spokesperson for Sweat said they were still going through a consultation process with employees.
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In statements obtained by The advertiserA company review highlighted the need to cut costs and “right-size” the organization.
“Sweat, along with others in the digital fitness industry, has experienced recent headwinds due to changes in customer demand and the effects of gyms returning to pre-pandemic operating levels as they have expanded. eased pandemic restrictions,” he said.
“After the review, there will be changes to our organizational structure that will result in layoffs across the company. Sweat is consulting with affected employees and these discussions will end next week.
“As a business, these are difficult decisions, but they are responsible and necessary for Sweat to improve its operational efficiency and strengthen business performance.”
The spokesperson added that Sweat would remain based in Adelaide.
The popularization of home workouts exploded during the pandemic as gyms around the world closed, forcing people to find ways to stay active indoors.
However, this once-booming demand has since dissipated, as gyms reopened and health concerns regarding COVID-19 subsided.
The first signs of trouble at Sweat emerged last year when it was revealed that the company suffered a $9.5 million loss in 2020-21.
The hit was largely due to falling subscription revenue in the US, which is Sweat’s biggest market, down 16.1 percent.
At the time, Tobi Pearce, who has since left the company, said the pandemic had fueled fierce competition in the US home fitness market, which, along with the reopening of gyms, has a high impact.
“Performance fell in the United States,” he said at the time.
“I think as a result of Covid, the increase in competition and the rate of increase in competition was very significant.”
US fitness giant iFIT took over Sweat in June 2021 for $400 million.
Tobi Pearce and Kayla Itsines are personal trainers who rose to fame after forming the Bikini Body Guide fitness program in 2015.
This became Sweat, which became one of the largest digital fitness training platforms for women in the world.
The couple separated in 2020, but remained business partners until Tobi parted ways with the business in February of this year.
Kayla, who has more than 15 million followers on Instagram, remains the face of the brand and remains involved in running the business.
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