Lululemon Cuts Corporate Jobs as Tariffs and Slow Spending Take a Toll

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FILE: Lululemon Athletica at Markville (Photo By Raysonho @ Open Grid Scheduler / Grid Engine – Own work, CC0)

Lululemon is laying off approximately 150 corporate employees as the athleticwear brand adjusts its business to remain competitive in a more challenging economic environment. The cuts affect staff at the company’s support centers and are part of a broader plan to become more efficient and invest in future growth, according to a company spokesperson.

“As we continue to deliver on our strategy, we regularly assess our business operations to ensure we are well-positioned for the future,” the spokesperson said. “Following a recent review, we have decided to evolve some aspects of our organizational structure to operate with more agility and further invest in our growth.”

This decision follows earlier changes, including closing a U.S. distribution center in 2024 and ending its fitness tech product, Mirror, in 2023.

Experts say Lululemon’s move is likely aimed at cutting costs and boosting productivity, possibly with the help of new technologies like artificial intelligence. It also comes as shoppers become more cautious with their spending.

At the same time, U.S. tariffs are pushing up costs for clothing companies, especially those that rely on manufacturing in countries like China. Lululemon plans to raise prices slightly on some items to help cover those costs but says most products won’t be affected.

During a recent earnings call, Chief Financial Officer Meghan Frank said the price increases are necessary to deal with ongoing trade challenges and rising expenses. The company also lowered its profit forecast for the year, which disappointed investors and led to a sharp drop in its stock—nearly 29% since the first-quarter results were announced.

CEO Calvin McDonald said that while Lululemon is in a stronger position than some competitors, the brand is already seeing fewer shoppers in its U.S. stores.

The changes reflect how even successful brands must adapt quickly as global trade policies shift and consumer habits evolve.