Chinese Sports Tech Firm Keep Cuts Workforce by 10-15%
Keep, a prominent Chinese sports technology company, has initiated a significant workforce reduction, laying off between 10% and 15% of its employees. According to reports from Chinese media outlet Jiemian, this restructuring effort began last week and results in over 100 job losses, based on the company's mid-2024 financial data. The layoffs primarily impact departments responsible for online operations, international expansion, and marketing. This move is part of Keep's broader strategy to reduce costs and enhance operational efficiency following recent organizational and business adjustments. The company has been engaged in cost-cutting measures since 2023, responding to performance declines observed after the lifting of COVID-19 restrictions. Data indicates that Keep's monthly active users decreased from 36.4 million in 2022 to 29.8 million by the end of 2023. Additionally, average monthly subscriptions dropped from 3.62 million to 3.19 million during the same period. Although the company managed to improve its gross margin despite increased marketing expenditures, it continues to report financial losses. These layoffs reflect the challenging post-pandemic market conditions facing digital fitness platforms in China.
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Chinese Sports Tech Firm Keep Cuts Workforce by 10-15%
Keep, a prominent Chinese sports technology company, has initiated a significant workforce reduction, laying off between 10% and 15% of its employees. According to reports from Chinese media outlet Jiemian, this restructuring effort began last week and results in over 100 job losses, based on the company's mid-2024 financial data. The layoffs primarily impact departments responsible for online operations, international expansion, and marketing. This move is part of Keep's broader strategy to reduce costs and enhance operational efficiency following recent organizational and business adjustments. The company has been engaged in cost-cutting measures since 2023, responding to performance declines observed after the lifting of COVID-19 restrictions. Data indicates that Keep's monthly active users decreased from 36.4 million in 2022 to 29.8 million by the end of 2023. Additionally, average monthly subscriptions dropped from 3.62 million to 3.19 million during the same period. Although the company managed to improve its gross margin despite increased marketing expenditures, it continues to report financial losses. These layoffs reflect the challenging post-pandemic market conditions facing digital fitness platforms in China.
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