Amazon-Backed Tonal slashes workforce by 35%

Tonal, a manufacturer of linked exercise equipment financed by Amazon, is reportedly laying off 35% of its workers, affecting all areas of its operations. According to sources, the company now employs roughly 750 employees, up from little over 110 prior to the Covid-19 pandemic, according to Tonal Chief Executive Officer (CEO) Aly Orady.

Orady also emphasised the necessity of profitability, particularly as the business considers an Initial Public Offering (IPO). The CEO claims that Tonal has never been profitable. However, the company will be on track to break even in a matter of months thanks to the employment layoffs.
In 2020 and 2021, Tonal, a company that offers $3,495 wall-mounted exercise equipment, saw explosive growth as a result of consumers looking for methods to get moving while they were stuck at home.

However, Tonal is applying the brakes right now. It joins a group of companies, including rival Peloton, that are laying off employees in order to cut costs and respond to higher levels of customer demand for their goods. Businesses are concurrently dealing with heated inflation on everything from fuel to worker pay to raw materials, and many are gearing up for a slowdown in the economy even though a recession isn't a given.

"As we head into a recession -- and many of us believe we are headed into a recession -- it is really important that we become a business that's here for the long term," Orady said . "What we are doing is effectively going from a hypergrowth business ... to more of a sustained-growth business," he further added.

The precise amount of money Tonal expects to save through the layoffs was not made public. Furthermore, it did not mention whether its valuation had been changed in the private markets.