China’s top fitness app said to lay off 15% of staff as users drop out
Keep is reportedly cutting more than 100 jobs, as online gym memberships lose their appeal in a challenging economy
The lay-offs, which began last week, are set to affect up to 15 per cent of the company’s workforce, according to a report on Monday from Jiemian, a Shanghai-based media outlet backed by the municipal government. Keep had 920 full-time staff as of June, according to its latest financial report.
The cuts will cover employees at the Beijing-based company’s online, international and marketing departments. Their last day will be on November 29, according to the report. As part of its cost-cutting measures, Keep has also stopped handing out free tissue paper to staff, the report said, citing an unnamed employee.
Keep did not immediately respond to a request for comment on Tuesday. The company told Jiemian that it typically devises its corporate strategy at the end or beginning of the year, and conducts restructuring and human resources adjustments accordingly.
Shares of Hong Kong-listed Keep ended Tuesday almost flat. The stock is down more than 55 per cent this year.
The company’s struggles reflect China’s stuttering economy. In the July to September period, the nation recorded its slowest quarterly growth since the middle of last year, although experts have expressed optimism that Beijing’s stimulus plan could boost growth and help end the year stronger.
