World renowned athleisure brand, Lululemon, recently made a significant decision that resulted in the layoff of approximately 100 employees. The move comes as the company undergoes restructuring in its Studio business division. A spokesperson for Lululemon confirmed the development, clarifying that the cuts were a consequence of the company's decision to fully integrate its recently launched fitness platform.
The spokesperson elaborated that the fitness platform, known as Lululemon Studio, has been successfully launched and is now being fully integrated within the larger Lululemon ecosystem. This strategic integration aligns with Lululemon's evolving approach, shifting from a hardware-centric focus to one that embraces digital app-based services. The company sees this transition as an opportunity to enhance its long-term value proposition, particularly through its Membership offerings, and to foster stronger connections with its community of valued customers. Despite the job reductions, the spokesperson emphasized that a majority of the affected employees were offered alternative roles within Lululemon.
Lululemon Studio has been a significant investment for the company since its acquisition of Mirror, a home fitness startup, back in 2020. The $500 million acquisition paved the way for the launch of the Lululemon Studio platform in 2022. This platform offers a diverse array of fitness classes, including over 10,000 on-demand and live-streamed sessions, catering to various fitness preferences. Initially, the Lululemon Studio Membership tier required the purchase of the Lululemon Studio Mirror, a wall-mounted workout machine. However, to broaden its accessibility, the company introduced a more affordable option that did not mandate the use of the device.
Despite the recent restructuring, Lululemon has been performing admirably in the retail landscape. The brand reported robust results for the first quarter of the year, standing strong amid a challenging retail environment that saw other companies facing earnings misses and weaker sales. Buoyed by its positive performance, Lululemon raised its outlook for the year ahead. The company now expects earnings per share to range from $11.74 to $11.94, while revenues are projected to fall between $9.44 billion to $9.51 billion.
The staff reductions at Lululemon reflect a broader trend in the retail industry, with several prominent retailers and technology companies implementing workforce cuts. Companies like Under Armour, REI, Amazon, Everlane, and others have also recently announced significant reductions in their workforces in response to the evolving market conditions. Unfortunately layoffs have become increasingly more common among retail brands and we hope that those effected will secure employment promptly. For more on the latest news going on in the culture and to stay up to date with the latest sneaker news and releases, connect with us on Instagram and Twitter.
Photo via Lululemon