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Indoor training platform Zwift has said it has decided to ‘scale back’ its hardware offering, pausing plans to launch a smart bike.
As a result, the company said it has ‘implemented changes’ to the organisation of the business, but has not confirmed how many people will be affected. However, according to DC Rainmaker, sources have put the layoffs at upwards of 150 people.
A statement from Zwift read: “Given the current macroeconomic environment, we have decided to scale back our hardware offering, pausing plans to launch a smart bike. As a consequence, Zwift has implemented difficult, yet important changes to the organisation of the business. We are grateful for the contributions of all those impacted and have done our very best to support them.
“We are committed to increasing the development of the core Zwift game experience, increasing the speed of new feature releases, and making the platform more accessible than ever before.
“We firmly believe these changes will allow us to achieve these goals and better support the continued growth of our subscription business. Further, these changes will preserve Zwift’s strong financial position as the world navigates these turbulent times.”
Read more: BMX retailer Custom Riders forced to shut up shop after almost 40 years in business
Home workout options had seen significant growth in popularity during the Covid-19 pandemic, with many companies initially reporting an uptake in sales of indoor training equipment. But this popularity seems to be fading, with Peleton now reporting a revenue drop of 24% compared to last year, driven by sinking demand for bikes and treadmills.
In other Zwift news, the company recently expanded its investment into women’s cycling with a four-year deal to become presenting partner of the Paris-Roubaix Femmes avec Zwift. The announcement builds on the momentum generated by Zwift’s partnership with the A.S.O for this year’s inaugural Tour de France Femmes avec Zwift.
