Lululemon implements job cuts in response to collaboration with Peloton.
Hey there! Let's dive into the latest scoop on the athletic wear giant, Lululemon. They've recently announced some major changes that'll shake up their team and their partnership with Peloton.
First off, Lululemon is calling it quits for their beloved fitness device Mirror, a move that will leave about 120 employees of their Lululemon Studio business out in the cold. This decision comes just after a five-year partnership with Peloton, where the latter will be Lululemon's digital fitness content provider. It seems that the Peloton partnership sent shockwaves through the ranks, as one of their company spokespersons stated, "We deeply appreciate their contributions and recognize how difficult this announcement is for the team."
The question remains whether Lululemon will extend a helping hand to these employees during their transition, but no solid answers have been provided yet. As for theMirror, it'll no longer be available for purchase by the end of the year. Interestingly, Lululemon acquired Mirror back in 2020 for a cool $500 million.
In addition to ditching Mirror, Lululemon has decided to end its digital app-only membership tier. Instead, customers will have the option to become Peloton App One members, providing access to thousands of Peloton classes for the same price they currently pay come November. Existing All-Access Members will reap the benefits of this new partnership.
But wait, there's more! This global partnership also establishes Lululemon as the primary athletic apparel partner for Peloton. Co-branded Lululemon apparel will soon be available at Peloton retail stores and on Peloton's website in the U.S, UK, and Canada. Peloton, however, has remained tight-lipped about potential layoffs related to this new partnership.
Partnerships like this can have a wide range of impacts, such as expanding market reach, product collaboration, employee opportunities, and operational integration. By associating with Peloton, Lululemon aims to further its brand exposure, innovate, and engage customers through a shared fitness experience - even if it means letting go of some of its team members along the way. So, stay tuned for more developments as this dynamic duo continues to shape the fitness landscape!
- Lululemon, in a move that could signal a new era, has partnered with Peloton, ending their digital app-only membership tier and replacing it with Peloton App One membership, offering access to thousands of Peloton classes for the same price.
- As part of this partnership, Lululemon will become the primary athletic apparel partner for Peloton, with co-branded Lululemon apparel available at Peloton retail stores and on Peloton's website in the U.S, UK, and Canada.
- The partnership also impacts employment, as Lululemon's decision to discontinue their fitness device Mirror, a move that will leave about 120 employees out of a job, suggests.
- Though Lululemon has not yet confirmed plans for providing severance to the displaced Mirror employees, the company spokesperson acknowledged the challenging nature of the announcement, expressing appreciation for their contributions.
