Lululemon laid off 120 employees from its Lululemon Studio team, which operated the Mirror fitness device, as part of a strategic shift announced in late September 2023. This move follows the company's decision to discontinue selling the Mirror hardware, acquired for $500 million in 2020, after struggling to grow sales and taking a significant impairment charge. The layoffs, representing a portion of the team dedicated to this segment, coincide with a new five-year partnership with Peloton, making Peloton the exclusive digital fitness content provider for Lululemon. This restructuring reflects Lululemon's pivot away from hardware toward digital content and partnerships in the retail and fitness industry, with the company's leadership for Lululemon Studio also set to depart in early 2024.
