Today Zwift is announcing a fresh round of workforce reductions.
This comes just 11 months after a 15% Zwift reduction in 2023 and a drastic redirection of the company in 2022 that saw the Tron Bike project fail to make it to market.
This time the reach and breadth of the layoffs are unclear and the initial statement from the brand only states “We shared with our team this morning that we are making a reduction in force. This was difficult news to deliver and we regret having to part ways with some incredibly talented and passionate people. Their contributions to our mission were substantial and we’re grateful for their work.”
Although those details make it hard to see the full picture, a subsequent Zwift forum update did add that “changes to the organization impact all areas of the business.”
It’s also clear that today’s news is affecting leadership. As part of the official statement, Zwift shared that “Eric Min will continue as sole CEO and [co-CEO] Kurt Biedler has chosen to resign.”
At this stage, many questions remain unanswered. The exact number of layoffs is not known, and it’s unclear whether this move comes as yet more fallout from the post-pandemic downturn, which also affected the Peloton share price this past week.
Zwift is quick to reassure, both in a formal statement and in the Forum post, stating that “Zwift remains a healthy, global business with a passionate community. We have seen accelerated growth over the last year but in the current environment, we must focus on sustainable and efficient growth. Zwift will be more agile and focused on delivering great things for our community.”
The forum post expands further, saying “The business is healthy and our community is growing. At the same time, growth has not rebounded at a fast enough pace to justify all of the investments that we have been making. As a result, we are taking action to become leaner with a continued focus on delivering great experiences for our community.”
We will update this story with more information as and when it becomes available.