Lululemon confirmed with SGB Media the reports that it had laid off 100 employees from Lululemon Studio, which represents its Mirror-connected fitness business.
In mid-April, numerous reports surfaced that Lululemon was working with an advisor to explore the sale of Mirror, which offers on-demand workouts and virtual personal training streamed through a video-enabled mirror screen.
The layoffs at Lululemon Studio come after the company shifted the Mirror business away from the hardware-centric business it acquired in 2020 to focus on an app-based model.
Lululemon released Lululemon Studio, its replacement for Mirror’s subscription program, in September 2022.
“As part of the evolution of Lululemon Studio, we made the decision to restructure the business and fully integrate it within Lululemon,” Lululemon said in media statement regarding the layoffs. “This shift, as well as our evolved strategy from a hardware-centric offering to one that is also focused on digital app-based services, enables Lululemon to better drive long-term value through our Membership offerings and create deeper connections with our community of guests.”
Lululemon Studio will be fully integrated into Lululemon and a majority of Lululemon Studio employees were “offered ongoing roles to support the future vision of Lululemon Studio,” the statement added.
The layoffs were mentioned by several employees on LinkedIn.
On March 29, LULU absorbed after-tax impairment and other charges totaling $442.7 million against fourth-quarter earnings related to Mirror as the device’s sales during the holiday season came in below expectations. The New York Post reported that according to a recent Lululemon filing, Lululemon now has a valuation on the Mirror business of $58 million.
At the time, LULU said it was updating its loyalty program to make ownership of a Mirror no longer a requirement as part of its paid-membership program, Lululemon Studio. The device costs $995, down from $1,500 when Lululemon acquired Mirror for $500 million in July 2020.
Photo courtesy Lululemon
