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Tonal faces lawsuit from manufacturer – Should you be concerned? [Video]

Tonal has had a rough 2022, from laying off over 35% of its employees to shutting down its original studio and coaches. While all of this has been concerning, similar companies like Peloton have been going through similar post-pandemic pains.

However, several recent developments set Tonal’s situation apart. Most worrying of all is a new lawsuit filed against Tonal by their primary manufacturer FOXCONN.

Similar to Peloton, Tonal saw tremendous growth during the pandemic and massively overestimated the likelihood of this growth continuing once things returned closer to normal.

Not only did Tonal have to cut 35% of its workforce, but it also ended up closing its original studio alongside all of its original coaches.

Layoffs like this are not by themselves always a concern. In fact, we are seeing huge layoffs like this across many tech companies right now. But there are numerous other factors that stand out that are concerning. Check out the video below for more details.

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Author

Avatar for Colin Jenkins Colin Jenkins

Colin lives in Ventura, CA where he runs a Strength & Conditioning facility. If you have suggestions for fitness tech that you’d like to see covered or reviewed, feel free to send info over to colin@9to5mac.com