F45 had a disastrous start to the year... and now it's laying off some of its staff.
👉 Background: F45 is the Aussie-born cult workout class chain that pioneered an intense 45 minute HIIT classes (with an obligatory high-five at the end).
👉 What happened: F45 launched back in 2013 and by 2022, it had 1,866 studios. F45 listed on the New York Stock Exchange about a year ago with lots of high-fives from its key investor Marky Mark Wahlberg. But the news isn't good now...
👉 What else: F45 warned that it expects revenue to be just half of its previous forecast. Talk about a miscalculation. It also announced that 110 employees will lose their jobs.
💡 On the path to profitability, companies face ongoing decisions…Do we get there by dialling up our revenue… or driving down our costs? Because these are the only two levers that can be pulled.
💡 For many companies, F45 included, the bluntest tool is reducing costs. Think: slashing equipment costs, negotiating with suppliers or rethinking the marketing budget.
💡 And the final cost to cut is staff. But sadly, F45 is cutting 45% of the company's workforce.
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