Fitness tech is contracting after funding and demand peaked during the pandemic.
The latest: Layoffs hit WHOOP and Hydrow last week, with the companies cutting 15% and 35% of their respective workforces.
WHOOP. The wearable maker raised $200M at a $3.6B valuation last August, reaching more than $400M in total.
The company also acquired PUSH, a strength-focused wearable, and introduced its 4.0 device, but it hit snags during the rollout that delayed delivery.
Speaking to The Boston Globe in May, WHOOP CEO Will Ahmed said the company planned to reach 1,000 staffers by year’s end. Reversing course, the organization is now eliminating jobs as it restructures.
Hydrow. The connected rowing company just raised $55M in March, bringing its total to nearly $270M.
Last year, Hydrow reported 300% YoY growth, reaching 200K users. Appearing on the Fitt Insider Podcast earlier this year, CEO Bruce Smith said the company wasn’t experiencing a slowdown like Peloton.
But now, the company is parting ways with 70 of its 200 employees to “reduce overall operating costs.”
The big picture: As at-home fitness stalls amid an economic downtown, companies are cutting costs—and jobs—in search of profits.
Looking ahead: Many fitness tech companies let pandemic demand and seemingly unlimited growth capital dictate their decision-making. Now, it’s time to restructure after overreaching.