Indoor virtual training platform Zwift has canceled plans for its much-anticipated own-branded smart bike.

Zwift had previously released several images of a new smart bike with Zwift's orange branding and aesthetics similar to the Tron Bike in the game, and revealed more specific details in a market research survey sent to some users.

The move was intended to capitalize on the increased demand for indoor training spurred by the COVID-19 craze and simplify the offering for newcomers to the Zwift platform with branded end-to-end software and hardware products

These plans included.

These plans have now changed.

"Given the current macroeconomic environment, we have decided to scale back our hardware offerings and have discontinued plans to launch a smart bike," Zwift explained in a statement. 9]

As a result, Zwift has implemented some difficult but important changes to the organization of its business. We appreciate the contributions of all those affected and have done our best to support them."

Cycling News spoke with Chris Snook, Zwift's PR director.

"This was a difficult decision, but one that was necessary to maintain a healthy financial situation."

According to sources cited in the DC Rainmaker report (opens in new tab), the company is said to be laying off up to 150 people from its entire staff base of around 700.

Snook could not comment on specific numbers or which departments the layoffs would come from. However, Snook confirmed that the losses will come from both the UK and the US and will not be limited to hardware-specific roles. Snook added that all affected employees will receive severance pay.

Currently, it is not clear whether Zwift will develop its own hardware in the future, and the company's official position is that it is "re-evaluating" its hardware offerings.

Snook said the restructuring reflects an adjustment in projected earnings to account for the loss of potential future hardware sales, rather than direct financial difficulties.

The drop in demand for indoor cycling affected several other brands, and the considerable decline in Peloton's revenue and market capitalization was the focus of much attention throughout the international financial press.

Among its business challenges, Peloton had a large amount of unsold inventory, which was damaging its financial position.

Zwift now appears to be prioritizing software development over hardware plans.

"We are committed to increasing development of Zwift's core gaming experience, increasing the speed of new feature releases, and making the platform more accessible than ever," the company statement reads.

However, the future accessibility of Zwift's platform may be in question, as just a few days ago Zwift announced that it would end support for older operating systems; with the May 4 announcement on the Zwift Forum (opens in new tab), Zwift is after August 1, legacy software systems such as macOS 10.12 and 10.13 will no longer be supported.

"Furthermore, these changes will maintain Zwift's strong financial footing as the world navigates through these turbulent times.

No further progress on the rumored TrainerRoad acquisition has surfaced since January, when social media activity and a Zwift investigation led to rumors that the two companies were trying to join forces.