Zwift is restructuring, laying off staff and “pausing” its hardware efforts.
Gaming x Fitness
A fitness company born out of gaming, Zwift enables virtual training and multiplayer competition for cycling or running.
Until recently, the company was primarily focused on software and game development. Unlike Peloton and other vertically integrated connected fitness companies, Zwift is compatible with almost any bike, smart trainer, and Wi-Fi-enabled screen.
But… earlier this year, the company announced its own hardware line, teasing a smart bike and indoor cycling trainer set to debut this summer.
With economic uncertainty looming as connected equipment sales slow, Zwift is ending its hardware effort.
The latest: According to multiple reports, the company laid off up to 150 employees, primarily related to hardware development. Officially, Zwift said it’s “pausing” equipment, but the layoffs and scrapped launch suggest otherwise.
Across the industry, from indoor cycling to endurance tech, companies are correcting course as demand wanes:
- Peloton cut 2,800 jobs and replaced its CEO as its valuation dropped from $50B to $4B.
- Wahoo shed ~20% of its staff ahead of acquiring digital platform RGT Cycling.
- Beachbody reduced staff by 10% after acquiring smart bike maker MYXfitness in a SPAC deal last summer.
Zooming out: Far from the new normal, connected equipment’s pandemic bubble has burst. As consumer habits shift while operators find their footing, consolidation and open ecosystems are gaining momentum. With Zwift and others bracing for economic turmoil, a wave of restructuring could reshape the industry.