Beachbody Drops MLM for Single-Level Affiliate Model and Cuts Workforce by a Third

EL SEGUNDO, September 30, 2024 --

The Beachbody Company, operating as BODi, said it will replace its multi-level marketing network with a single-level affiliate program launching November 1, 2024. Current Team BODi partners in the U.S. and Canada will move to the affiliate program, and the MLM network is expected to be fully wound down by January 1, 2025. The company will also expand its direct-to-consumer, Amazon and partnership sales channels.

The board-approved restructuring will consolidate the business on the BODi.com e-commerce platform, eliminate network marketing support functions and cut the workforce by about 33 percent, including the position of President Michael Neimand. The company expects annualized overhead savings of 54 million dollars and a drop in its revenue break-even point from under 430 million dollars to under 225 million dollars. It estimates 6 million to 8 million dollars in cash severance charges and about 11 million dollars in non-cash charges.

Executive Chairman Mark Goldston called the multi-level marketing model outdated and unsustainable given current market conditions and consumer preferences. BODi reaffirmed its third-quarter guidance of 97 million to 107 million dollars in revenue and said it is evaluating whether the pivot requires a goodwill impairment.