Vancouver-based apparel brand Lululemon Athletica is laying off around 150 corporate employees, as confirmed in a company statement to CBC News.
The job cuts follow an internal operations review aimed at increasing agility and investing in future growth during growing economic headwinds and consumer uncertainty.
The layoffs, impacting store support centers, come as the athleisure continues to expand globally — most recently adding 56 new company-operated stores in 2024, including 14 from its acquisition in Mexico.
Despite this, Lululemon is navigating slower growth in key markets, notably the US, where store traffic has started to fall.
“While Lululemon is better positioned than most, we are seeing reduced in-store traffic in the US,” said CEO Calvin McDonald in the company’s latest earnings call.
The brand now expects diluted earnings per share between $14.58 and $14.78, down from previous projections of up to $15.15.
Shares have plunged nearly 29% since Q1 results were announced.
In its response, Lululemon insists this is not a sign of decline, but a strategic repositioning. “This is not a decision we made lightly, and we are committed to supporting our employees through this transition.”
The restructure is also seen as part of a wider efficiency drive powered by artificial intelligence.
“The cuts appear aimed at streamlining costs and improving efficiency — likely aided by productivity gains from AI,” wrote Bloomberg Intelligence analysts Poonam Goyal and Sydney Goodman.
The layoffs follow earlier moves to shutter a U.S. distribution centre in 2024 and discontinue its Mirror fitness product in 2023. Analysts suggest these are pre-emptive efforts to stay ahead of worsening economic conditions, including inflation and “sluggish” demand in America.
Despite the job losses, Lululemon says it remains focused on growth through advanced technology and global expansion — a strategic reset rather than retreat.
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