For the second time in two years, Mindbody has implemented staff layoffs at Mindbody, and this time it also included employees at ClassPass, which Mindbody acquired in October 2021.
The software and experience technology platform company did not share how many people were laid off, but those who were laid off posted on LinkedIn and referred to “mass layoffs.”
In a statement, Mindbody shared: “While the wellness industry continues to recover from the impact of the pandemic, increased economic uncertainty and inflationary pressures have slowed progress and created new challenges for our industry to navigate. While these changes are incredibly difficult and will be deeply felt across our entire organization, they will ultimately help us build a more resilient platform capable of meeting evolving market dynamics while better positioning our company for long-term growth.”
The company declined to share more details about the layoffs, including how many people were impacted.
Mindbody also laid off staff in April 2020 soon after the COVID-19 pandemic started and clubs and studios closed. In that layoff, about 700 of the company’s then 2,000 employees were let go.
In June, Mindbody settled a stockholder class action lawsuit for $27 million. The lawsuit, which was filed in June 2019, related to the merger of Mindbody with affiliates of Vista Equity Partners Management LLC in February 2019. The purchase took the formerly public company private. The suit alleged that some of the company executives in 2019, including then CEO Richard Stollmeyer, “breached their fiduciary duties in connection with their approval of the merger and by causing Mindbody to issue a false and misleading proxy statement in connection with the merger.”
In June 2020, Stollmeyer moved into an executive chair role, and Josh McCarter, who had been serving as president, was named CEO.
In August, Carter moved to the board, and Mindbody promoted Fritz Lanman from president to CEO.