Zwift Lays Off 15% of Workforce
The gamified cycling platform is the latest fit tech name to conduct layoffs
Zwift has announced it’s laying off 15 percent of its staff.
The immersive multiplayer online cycling and running platform broke the news via a company-wide email on March 7 sent by co-CEO Eric Min, according to a report by DCRainmaker.
Zwift also conducted layoffs last year, with sources suggesting roughly 150 employees were cut in 2022.
The new round of layoffs will affect approximately 80 Zwift employees and was reportedly prompted by a “fresh look” at Zwift’s state of affairs with the addition of newly added co-CEO Kurt Beidler. Beidler came to Zwift from Amazon late last year and has been involved in the daily operations of the cycling platform.
Zwift shared that the reorganization is about “investing in the fundamentals” rather than “spending on brand,” where the company is looking to focus on product development rather than marketing.
The company offered an official statement to CyclingWeekly: “After very careful consideration, we have taken the decision to make important changes to the organization. These changes mean we will regretfully be parting ways with a number of very talented colleagues. We are grateful for their contributions to Zwift and will do our best to support them in their transition.
The changes made today impact teams across the business but some have been impacted more than others. Scaling back in some areas will allow us to invest more heavily in our product. The changes we have made will allow us to further increase the speed of development, adding greater value to our customers through new experiences and more engaging content.”
The Zwift layoffs were conducted across various departments in the UK and US, and the majority of the cuts were in the marketing department, HR, and people teams.
Following Min’s initial email, a second invitation to a virtual meeting for selected staff was sent, according to DCRainmaker. Those who were notified about the virtual meeting were laid off.
According to LinkedIn, Zwift eliminated employees in roles such as production, QA, brand and community building and eliminated its DEI social impact team.
“The trend continues… Zwift had their 2nd round of layoffs yesterday. Sadly I did not survive this latest round with several other super talented and just amazing humans. The sting is still fresh from the mass fallout of the iFIT implosion, and really the fitness, tech and cycling mess so many of us are in right now. But here we are,” one now-former Zwift employee posted.
Just last month, Min spoke candidly to Bloomberg, reporting that while the gamified cycling company raised $620 million and is now valued at over $1 billion, Zwift is not yet profitable. He also added that the company is considering going public in the future.
Min also shared that Zwift hopes to expand its subscriber base, estimating that “millions are just sitting on the sidelines.”
The co-founder and co-CEO also touched on Zwift’s $15 a month subscription fee and stated that it isn’t sustainable in the long term. Min confirmed that Zwift was exploring locked annual memberships.
Courtney Rehfeldt has worked in the broadcasting media industry since 2007 and has freelanced since 2012. Her work has been featured in Age of Awareness, Times Beacon Record, The New York Times, and she has an upcoming piece in Slate. She studied yoga & meditation under Beryl Bender Birch at The Hard & The Soft Yoga Institute. She enjoys hiking, being outdoors, and is an avid reader. Courtney has a BA in Media & Communications studies.