Lululemon Lays Off 150, Plans ‘Modest’ Price Increases
Amid tariff pressures and softening U.S. sales, the athleisure giant is streamlining operations and a new pricing strategy
Lululemon is tightening its operations by eliminating roughly 150 corporate roles, a move the company says is part of an effort to operate with greater agility.
The layoffs, which impact employees across Lululemon’s global store support centers, come as the popular brand prepares to implement strategic price increases, described by executives as “modest” during its Q1 2025 earnings call.
“As we continue to deliver on our strategy, we regularly assess our business operations to ensure we are well-positioned for the future,” a Lululemon spokesperson told ATN, adding that the decision was not one that the company made lightly.
“Following a recent review, we have decided to evolve some aspects of our organizational structure to operate with more agility and further invest in our growth,” the spokesperson continued, confirming that Lululemon is laying off approximately 150 corporate employees in its store support centers.
Earlier this month, the Vancouver-based athleisure giant noted a pullback in U.S. consumer spending but said shoppers are responding well to new items, particularly its No Line Align legging and the Daydrift trouser.
“The current tariff paradigm has brought uncertainty into the retail environment,” Lululemon CEO Calvin McDonald told investors during this month’s earnings call. “As consumers try to assess the impact they will have on daily life, as businesses evaluate these impacts as well, I believe we are better positioned than most to navigate the near term while also maintaining our focus on investing in our growth potential over the long term.”
He added that the athleisure company had been looking to offset increased tariff rates through a combination of cost controls, supply chain optimization and pricing adjustments and would remain “nimble” in its approach.
Tariff pressures have rippled across the activewear, apparel and fitness equipment industry, and while Lululemon prepares for selective price increases, others are experiencing advantages. Gildan Activewear, a Canadian maker of basics like T-shirts, socks and activewear, recently reported stronger-than-expected profits in Q1 and told investors it is “well-positioned” to weather tariff-related costs thanks to its significant U.S.-sourced materials and low-cost manufacturing.