Lululemon Lays Off 120 More Staffers Following Peloton Deal

The new round of layoffs for Lululemon Studio comes as the athleisure brand turns to Peloton for digital fitness content

Lululemon is reducing its workforce again, this time cutting 120 employees across its Lululemon Studio team. The layoffs follow Lululemon’s new deal with Peloton, which will see the connected fitness company create exclusive digital fitness content for the athleisure brand in return for Lululemon creating Peloton-branded apparel.

The athleisure brand’s digital fitness unit, Lululemon Studio, laid off 100 employees earlier this summer, perhaps in a preview of what was to come.

The downsizing comes after Lululemon confirmed it’s finally giving up on its connected fitness Mirror, which will be discontinued before the end of the year.

Looking to strike hot during the at-home fitness boom, Lululemon acquired the Mirror for $500 million in 2020, an investment that soured before becoming a costly albatross. Despite trying to offload the connected fitness mirror at a steep discount, Lululemon had been unable to find a buyer for the hardware.

Once competitors and formerly locked in litigation, Lululemon and Peloton now plan to work together to reach their combined 20 million members and guests, engaging their global communities with technical athletic wear, real-life experiences, special programming and original content. The deal also sees some select Peloton instructors becoming Lululemon ambassadors.