Tonal lays off 35 percent of its workforce

Connected fitness equipment maker Tonal is laying off 35 percent of its workforce, according to . Like Peloton, the company grew its headcount significantly over the last two years as demand for its product, a home weightlifting system, skyrocketed due to pandemic lockdowns. Before the start of 2020, Tonal employed about 110 people. It now has closer to 750 workers, CEO Aly Orday told CNBC. Orday said the move would help put Tonal on track to start making money within the next few months as it looks to go public.

“As we head into a recession — and many of us believe we’re headed into a recession — it’s really important that we become a business that’s here for the long term,” Orday told the outlet. Tonal will provide affected employees at least eight weeks of severance pay and healthcare benefits through to the end of September. 

Relative to Peloton, Tonal is coming out of the pandemic mostly unscathed. The connected fitness industry’s best-known player , or about 20 percent of its total workforce, at the start of 2022. More recently, Peloton announced it would .