By Colin Kellaher
Beachbody is shedding a third of its workforce and overhauling its core business model as part of a restructuring aimed at reducing the fitness and nutrition company's revenue break-even point.
After the closing bell on Monday, Beachbody said it will pivot to a single-level affiliate program from its current multi-level marketing network channel, a move the El Segundo, Calif., company said will offer a simpler approach to customer acquisition and directly reward sellers for their efforts.
Beachbody said the restructuring will centralize its business around one e-commerce platform at BODi.com, eliminate network marketing support functions and reduce its workforce by about 33%, with President Michael Neimand leaving after his job was eliminated. Neimand had been president since 2016.
The company currently has about 580 employees, according to data from FactSet.
Beachbody said it expects the restructuring to result in overhead savings of $54 million on an annualized run-rate basis and to lower its break-even point to less than $225 million of annual revenue from less than $430 million.
Beachbody said it expects to book cash charges of $6 million to $8 million related to the job cuts and about $11 million in non-cash charges related to accelerated depreciation for certain assets that it no longer plans to use.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
October 01, 2024 06:19 ET (10:19 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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