Today, Zwift announced that it will make 15% of its current workforce redundant; Zwift appears to be the latest company to cut jobs to survive in a shrinking industry after the bubble burst, laying off 150 staff in May 2022, and canceled plans for the Tron Bike exercise bike project.

"After very careful consideration, we have made the decision to make significant changes to our organization. These changes mean that we will regretfully part ways with many of our very talented colleagues. We appreciate their contributions to Zwift and will do our best to support their transition," said a Zwift spokesperson.

The bulk of the layoffs will reportedly be applied to the human resources and marketing departments, with the aim of allowing the company to invest more in other areas and develop more quickly. zwift will honor its current sponsorship agreements and marketing campaign commitments. It is understood that the company will.

This news follows similar news affecting 8 percent of Specialized's global layoffs in January, perhaps part of the same internal reorganization that led to the dissolution of Machines for Freedom and the severing of ties with the majority of its ambassadors.

Restructuring also seems to be behind Zwift's motives. By scaling back in some areas," the spokesperson continued, "we will be able to invest more heavily in our products. This change will allow us to further accelerate our development and deliver greater value to our customers through new experiences and more engaging content."

The cycling industry has experienced a marked contraction after the unsustainable boom that occurred during the pandemic, and in recent months we have seen many headlines about poor earnings and layoffs.

Most recently, industry giant Shimano predicted in January that 2023 would be a tough year, despite two consecutive years of record profits. In addition, Wahoo saw two layoffs, one of which coincided with a 15% cut at Strava (opens in new tab), and Pearl Izumi saw layoffs and office closures.

Of note is the fate of Rad Power Bikes, which has also experienced three rounds of layoffs. Electric bikes were perhaps the largest booming sector during the pandemic.

"All outgoing colleagues will receive generous severance and career support to help them through the transition," a Zwift spokesperson concluded.