After deciding to cut 35% of its workforce last month, Tonal has announced it will also be shutting down operations at its original Los Angeles Studio. Alongside the closure, coaches based in Los Angeles are also being let go.
Similar to many connected fitness companies like Peloton and iFIT, Tonal has been making drastic cuts to move the company toward profitability. This includes the 35% cut of its workforce last month, and now includes operations at its original studio in Los Angeles.
In the Tonal Facebook Group, CEO Aly Orady said:
Given the events that transpired a few weeks ago (35% reduction of the Tonal workforce), we will be taking our LA studio offline, and shifting focus to ramp our new studio in New York.
The new Tonal studio in New York was announced just two months ago. At that time, five new coaches were added on in an effort to offer more available live workouts to those on the East Coast.
In regards to the future of the Los Angeles-based coaches, Orady continued:
So here’s the truth: our coach relationships are complex – some are contractors, some of them are full time – but each are individuals we care about, and we needed the past few weeks to determine what our go forward plans could be with each of them while maintaining the best possible member experience. The unfortunate reality is we won’t be able to continue in a full time capacity with our LA-based coaches.
We know you love our coaches. And we love them too. This isn’t the outcome we wanted, and now, we want to do our best to take care of everyone involved. With that said, each of our coaches will receive generous severance and continuation of their healthcare benefits.
While many coaches will be unfortunately let go, Orady did conform that all of their on-demand classes will remain available on Tonal.
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