Lululemon lays off 120 employees as it announces a Peloton partnership and plans to stop selling its Mirror device

• Lululemon laid off 120 employees who worked on its Mirror device.
• Lululemon Studio’s leadership team will also depart later this year.
• The company announced a five-year partnership with Peloton this week.

According to an internal memo obtained by Insider, Lululemon laid off approximately 120 employees on Wednesday as it announced plans to discontinue sales of its Mirror connected-fitness device.

The job cuts were made to the company’s Lululemon Studio team, which ran Mirror’s operations.

Mirror was purchased by Lululemon for $500 million in 2020. However, it had difficulty increasing sales of the device, which is essentially a mirror that displays workout classes. Brynn Putnam, Mirror’s founder and former CEO, will leave in September 2021. Lululemon announced a $443 million impairment charge related to the Mirror acquisition during its fourth-quarter earnings call in March.

Lululemon previously laid off 100 employees from Lululemon Studio in July, citing the need for reorganization as the company shifted away from hardware sales and toward digital content.

Lululemon representatives did not immediately respond to Insider’s request for comment.

Lululemon announced a five-year partnership with Peloton on Wednesday, making Peloton the sole provider of digital fitness content for Lululemon. On November 1, Peloton classes will be available to Lululemon Studio All-Access Members. As part of the agreement, Peloton will begin selling co-branded Lululemon apparel on October 11.

“As we considered this partnership over the past few months, we knew it was the right step to take given the opportunity to build and extend our community around the world,” said Celeste Burgoyne, Lululemon’s president of Americas and global guest innovation. “However, the most difficult decision was the impact it would have on our people.”

According to the memo, Lululemon Studio CEO Mike Aragon, COO Olivia Lange, and Head of Content Kailee Combs will leave the company “at the beginning of 2024.” Aragon, according to Burgoyne, was “critical in helping lead negotiations for this partnership.”

“As we move forward, we are focused on how the partnership will elevate our ongoing membership benefits and community experiences for our guests as we connect with this highly engaged community in North America and in key markets around the world,” wrote Burgoyne.