Lululemone cutting to cut 150 corporate jobs as athleizure brand braces for tariff effects

The retailer said on Wednesday that Vancouver-based dress company Lululemon Athletic Inc. The part of a change in its organizational structure is cutting around 150 corporate jobs.

The affected employees are part of its store assistance centers, a spokesperson of the company in a statement told CBC News.

The spokesperson said, “As we continue to distribute on our strategy, we regularly assess our business operations to ensure that we are well deployed for the future.” “After a recent review, we have decided to develop some aspects of our organizational structure to work more agility and invest in our growth.”

The move came through US President Donald Trump’s global tariff war supply chains and dent bottom lines. Trump’s tariff has taken special purpose in China – a major market for Lululem – and many Middle Eastern and Asian countries that are MccCAS for clothing manufacturers.

Bloomberg Intelligence Retail Analysts Poonam Goyal and Sydney Goodman wrote that the cuts “are aimed at streamlining costs and improving efficiency – (artificial intelligence) provides productivity benefits from productivity benefits (artificial intelligence).

“This step can also help preserve margin as the company navigates more vigilant expenses among shopkeepers,” he wrote.

Analysts noted that this latest round of pruning follows other people created in 2024, when Lululeman closed an American distribution center, and in 2023, when it closed its associated fitness products, mirrors.

Price hike is coming

The company is planning to increase strategic value as it works with US tariffs, and will pass some costs with its customers in its first-winter financial results earlier this month.

Price growth on products is expected to be modest and only a few lululemone products will be applied. However, they show that the business is to move himself from Trump’s business war and pressurize the consumer expense, Chief Financial Officer Meghan Frank told analysts on the call on 5 June.

The retailer reduced his profit expectations for the whole year, estimating a more obvious impact than the expected tariffs.

The company said that diluted income per share is now expected to be between $ 14.58 US and $ 14.78 for the year, below earlier guidance $ 14.95 below the US limit $ 15.15 US.

Lululeman’s shares have fallen by about 29 percent as the company reported its first quarter earnings.

CEO Calvin McDonald’s said at the time that while Lululemone is the best, most already, business is already watching less store traffic, especially in America