Zwift makes fresh wave of redundancies with 15 per cent of workers laid off

Online training platform Zwift has confirmed a fresh wave of redundancies which will result in 15 per cent of its workforce being laid off.

The latest job losses come 10 months after the Long Beach, California-based company cut its workforce by 150 people, mainly involved in hardware, after putting development of its smart bike on hold.

> Zwift lays off over 150 staff after “pausing” smart bike hardware plans

According to the website DCRainmaker, some 80 jobs will go in the latest round of cuts, which are said to be focused on areas such as marketing and human resources, with the company saying that the savings made will enable it to “invest more heavily in our product.”

https://www.dcrainmaker.com/2023/03/zwift-layoffs-announces-reducing-wor...

The redundancies, which were reportedly announced in a company-wide email with affected staff then invited to an online meeting, come three months after Kurt Beidler assumed responsibility for most day-to-day functions at the business after joining from Amazon as co-CEO alongside Zwift founder Eric Min.

In a statement provided to road.cc, Zwift said: “After very careful consideration, we have taken the decision to make important changes to the organisation. These changes mean we will regretfully be parting ways with a number of very talented colleagues. We are grateful for their contributions to Zwift and will do our best to support them in their transition.

“The changes made today impact teams across the business but some have been impacted more than others. Scaling back in some areas will allow us to invest more heavily in our product. The changes we have made will allow us to further increase the speed of development, adding greater value to our customers through new experiences and more engaging content,” the company added.

DCRainmaker’s report says that Zwift will provide the employees who are losing their jobs with what is described as a “generous severance package” including payment of bonuses, careers advice support, and extension of healthcare provision for those that are based in the US.

The latest wave of job losses at Zwift reflect the headwinds the cycling industry within the US and elsewhere has faced following the temporary boom afforded by the coronavirus pandemic in 2020 and early 2021, with the market hit, like many others, by inflationary pressures, supply chain disruption and consumers looking to rein in non-essential expenditure.

In Zwift’s case, stringent lockdown rules in a number of countries meant that outdoor training was impossible or severely restricted for many cyclists, meaning they turned to online platforms to ride at home, and the company’s profile was also boosted by it hosting a number of virtual races featuring top pro riders before racing on the road resumed.