Zwift, an indoor cycling and training app that connects players from all over the world, announced earlier this week its second round of layoffs within the last year. Additionally, co-CEO Kurt Beidler resigned. Keep reading to learn more.
In March 2023, Zwift made a 15% global staff reduction, which left the company with around 450 employees. Now, less than a year later, the connected cycling and training app has announced more layoffs, or as Zwift calls it, “a reduction in force.” With co-CEO Kurt Beidler’s resignation, that leaves co-founder Eric Min as the sole CEO amidst the most recent round of layoffs.
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.
While Zwift has done impressive work in attracting new members and retaining current members to its platform, its recent statement contradicts itself. Zwift says that its business is healthy and growing, but also notes that “growth hasn’t rebounded enough to justify its investments“:
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.
Zwift isn’t the only connected fitness company struggling, though. Peloton went from being an explosive customer favorite during the pandemic to having its shares take a 30% plunge after the most recent Q2 earnings call, in which Barry McCarthy – Peloton’s CEO – noted that if the company wasn’t failing, they weren’t being aggressive enough.
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