Lululemon is reducing its corporate headcount—eliminating about 150 roles at its store support centers—as part of a broader effort to refine its organizational structure.
The move follows a recent internal review, during which Lululemon identified opportunities to operate more nimbly and channel additional investment into growth priorities.
The decision comes at a time when the company is facing pressure in its core North American market. U.S. sales have notably softened, while excess inventory has accumulated—creating margin risk in the region that accounts for roughly 75% of its revenue .
Additionally, inflationary pressures and new U.S. tariffs have led Lululemon to plan modest price increases on select items to help protect profitability.
Despite softer financial projections, Lululemon posted a first-quarter revenue increase of around 7% to $2.37 billion, yet trimmed its annual profit forecast due to evolving market conditions.
According to company representatives, these layoffs are part of an intentional redesign: “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.”
As Lululemon reinvents its team structure and pricing strategy, the brand is hoping these steps will better position it to overcome macroeconomic headwinds and competitive pressure—while ensuring operational efficiency for future expansion.