Beachbody fitness company lays off a third of its workforce, shifts to affiliate model

Core Viewpoint - Beachbody is restructuring its business model by transitioning from a multi-level marketing structure to a single-level affiliate program, resulting in significant layoffs and cost-cutting measures [1][2][4]. Group 1: Business Model Changes - The company will lay off nearly 200 workers, which is about one-third of its workforce of approximately 580 employees, as part of the restructuring [2][3]. - The new affiliate model will financially reward individuals for driving traffic, leads, or sales through promotional and marketing efforts, aiming for a simpler and more modern approach [2][3]. Group 2: Financial Implications - Beachbody anticipates that the cost-cutting measures will save the company $54 million on overhead [4]. - The restructuring will lower the revenue break-even point from less than$430 million to less than $225 million in annual revenue [4]. - The company expects its revenue for the third quarter ending September 30 to be in the range of$97 million to $107 million [4].