Tonal, a connected fitness equipment maker backed by Serena Williams and Amazon's Alexa fund, is laying off 35% of its workforce, affecting about 262 employees from its current total of 750. The company, which experienced rapid growth during the pandemic, is now cutting costs to achieve profitability and prepare for a potential initial public offering. CEO Aly Orady cited the need to adapt to shifting consumer demand and economic pressures, including inflation and a potential recession, as reasons for the restructuring. This move aligns Tonal with industry trends, following similar actions by competitors like Peloton, as the fitness tech sector adjusts from hypergrowth to a more sustainable business model.
