Lululemon's Strategic Repositioning: 150 Jobs Cut in Quest for Agility
Vancouver, vrijdag, 20 juni 2025.
Canadian athleisure giant Lululemon is implementing a radical reorganisation by cutting 150 management positions, a move arising from increasing competitive pressure and the need to operate more flexibly. The decision is part of a broader strategy to reform the organisational structure and stimulate growth. Simultaneously, the company is preparing for strategic price increases to compensate for the impact of US import duties. The most notable development is the recognition that current market conditions require a fundamental review of the company’s strategy, focusing on cost efficiency and agility in a challenging retail environment.
Reorganisation and Market Challenges
Lululemon Athletica announces a strategic restructuring involving the elimination of 150 roles at the headquarters. This measure is a direct response to increasing competitive pressure and the need to enhance organisational agility [1][2]. The affected employees are primarily working in the company’s store support centres [3].
Financial Challenges and Strategic Adjustments
The reorganisation follows a series of previous interventions, including the closure of an American distribution centre in 2024 and the discontinuation of the technological fitness product Mirror in 2023 [4]. Moreover, Lululemon is preparing for strategic price increases to compensate for the impact of US import duties [5]. The company expects to implement modest price rises that will only affect a select number of products [6].
Profit Outlook and Market Position
In the first quarter of 2025, Lululemon reported a revenue growth of 7% to £2.37 billion, primarily through the opening of new stores [7]. Nevertheless, the company has downwardly revised its profit forecast for the current year. The expected earnings per share have decreased by 3.762 percent, indicating challenging market conditions [8].