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San Luis Obispo
October 26, 2022
June 10, 2024

MindBody Layoffs: What Happened & Why?

In April 2020, Mindbody, a tech company specializing in software solutions for the health and wellness industry, faced a significant challenge due to the coronavirus pandemic. With gyms and fitness studios closing, the company's revenue took a hit, leading to the layoff and furlough of approximately 700 out of 2,000 workers worldwide. In this article, we'll discuss what happened, why it happened, and the potential future impact of these layoffs.

Why did MindBody have layoffs?

MindBody's decision to lay off and furlough hundreds of workers was primarily driven by the coronavirus pandemic's impact on their business. As the crisis unfolded, nearly 95% of their customers, including gyms and fitness studios, were forced to shut down. This led to a significant drop in revenue, prompting the company to take action to protect its long-term viability. The deepest cuts were made in the sales and marketing department, as well as in customer service.

As the health and beauty sectors began shifting towards online connections, MindBody released a virtual wellness platform to support this trend. Despite the challenges, the company remains committed to its customers and the Central Coast. MindBody executives have taken pay cuts, and many remaining workers have had their hours or pay reduced. The company will continue to focus on providing technology to help its users pivot to virtual offerings during the pandemic.

Financial Impact and Future Directions

MindBody has implemented layoffs as a strategic response to the financial challenges posed by the pandemic, focusing on long-term stability. The company provided severance packages to affected employees, enhancing this support based on their tenure, while maintaining health benefits for furloughed workers.

In a strategic pivot, MindBody is now developing a virtual wellness platform to foster online connections, adapting to the evolving demands of the health and wellness industry. This shift aims to position MindBody for sustained success by leveraging digital solutions to meet new consumer preferences

Impact on Industry

The fitness industry faces significant challenges due to the pandemic, with many businesses shifting to online platforms. MindBody's layoffs and focus on virtual wellness solutions reflect this trend. The company's workforce reduction may temporarily affect customer support and sales, but their commitment to providing technology for virtual offerings aims to help the industry adapt and recover in the long run.


MindBody's layoffs and furloughs were driven by the pandemic's impact on their revenue, as gyms and fitness studios closed. The company is now focusing on a virtual wellness platform to adapt to the industry's shift towards online connections. These workforce reductions may temporarily affect customer support and sales, but MindBody's commitment to virtual offerings could help the health and wellness sector recover. Future implications may include further strategic shifts to stay competitive in the evolving market.