Title: Centr Fitness Cuts Australian Jobs as Company Shifts Focus to US
Introduction:
At least 22 Australian employees of Centr Fitness, the popular training app co-founded by Chris Hemsworth, were locked out of their computers this week after learning that their positions had been made redundant. The mass job cuts were confirmed in an email from the company’s American CEO Andrew Sugerman. The app, which boasts a large subscriber base, was sold to HighPost Capital in 2022, with Hemsworth remaining involved as the second largest shareholder.
Relocation and Outsourcing:
In an email sent to Australian staff, Sugerman explained that the company was making efforts to centralize operations in the United States and outsource certain tasks. He stated that the decision to relocate and outsource specific operations in the Melbourne office was aimed at making Centr a global wellness brand and aligning digital and physical aspects of the business. Engineering, creative services, and product functions were deemed redundant in Australia.
Concerns and Reactions:
Impacted staff members expressed their concerns about the shift away from Australia, fearing that Centr may no longer exist in the country within six months. They believed this move would disappoint the company’s loyal customer base. Additionally, an engineering team member highlighted the challenge of taking over operations with no handover, as there are over 30 interconnected systems that keep the app running.
Job Losses and Company Response:
At least 22 Australian-based Centr workers were affected by the job cuts. A Centr spokesperson thanked the departing staff and explained that the company had decided to rethink certain functions to enhance efficiency and collaboration. They assured that Melbourne would remain the global hub for content production, customer service, sales, and marketing for Australia, New Zealand, and Asia. The spokesperson emphasized that Melbourne would continue to play a crucial role in Centr’s operations.
Company Merger and Future Plans:
Following the 2022 takeover, which reportedly earned Hemsworth $267 million, he expressed his excitement about Centr joining the HighPost Capital stable. The investment group, co-headed by Mark Bezos, merged Centr and fitness equipment company Inspire Fitness under the name Centr LLC. The combined company is expected to benefit from increased scale, synergies, and the growing focus on personal health and wellbeing.
Conclusion:
Centr Fitness’s decision to relocate and outsource operations from Australia to the United States has resulted in a significant number of job losses for Australian employees. While the company aims to expand its global presence and align digital and physical aspects of the business, concerns have been raised about the future of Centr in Australia. The Melbourne office will continue to serve as a content production hub and handle customer service, sales, and marketing for the region. Centr LLC, the merged entity, is poised to capitalize on the growing interest in personal health and wellbeing.
Original Story at www.news.com.au – 2023-07-13 01:52:30
