Lululemon cutting 150 corporate jobs as athleisure brand braces for tariff impact

Vancouver-based apparel company Lululemon Athletica Inc. is cutting about 150 corporate jobs as part of changes to its organizational structure, the retailer said Wednesday.

The affected employees are part of its store support centres, a spokesperson for the company told CBC News in a statement.

"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."

The move comes as U.S. President Donald Trump's global tariff war ripples through supply chains and dents bottom lines. Trump's tariffs have taken particular aim at China — a key market for Lululemon — and several Middle Eastern and Asian countries that are meccas for clothing manufacturers.

The cuts appear "aimed at streamlining costs and improving efficiency — likely aided by productivity gains from [artificial intelligence] — amid growing consumer uncertainty," wrote Bloomberg Intelligence retail analysts Poonam Goyal and Sydney Goodman.

"The move may also help preserve margins as the company navigates more cautious spending among shoppers," they wrote.

The analysts note this latest round of layoffs follows others made in 2024, when Lululemon closed a U.S. distribution centre, and in 2023, when it discontinued its connected fitness product, Mirror.

The company is planning strategic price increases as it deals with U.S. tariffs, and will pass some of the costs along to its customers, it said in its first-quarter financial results earlier this month.

The price increases on products are expected to be modest and will only apply to a few Lululemon products. However, they reflect the lengths the business is having to go to shield itself from Trump's trade war and the pressure it's putting on consumer spending, chief financial officer Meghan Frank told analysts on a June 5 call.

The retailer lowered its profit expectations for the full year, estimating a more pronounced impact from expected tariffs.

The company said diluted earnings per share are now expected to be between $14.58 US and $14.78 US for the year, down from earlier guidance for a range of $14.95 US to $15.15 US.

Lululemon shares have plunged almost 29 per cent since the company reported its first-quarter earnings.

CEO Calvin McDonald said at the time that while Lululemon is better positioned than most, the business is already seeing lower store traffic, particularly in the U.S.