BCBusiness
The Vancouver-based athleisure giant is reallocating resources to high-growth areas while planning modest price hikes to navigate trade pressures
Vancouver-headquartered Lululemon is cutting about 150 corporate roles based in its store support centres across North America as it restructures in response to slowing U.S. sales and rising import tariffs.
In its official statement, the athleisure giant emphasized that the cuts are not about reducing costs but about “operating with more agility” and redirecting resources to high-growth areas. “As we continue to deliver on our strategy, we regularly assess our business operations to ensure we are well-positioned for the future,” it said.
The move comes even as Lululemon was ranked third on BCBusiness’s 2025 Top 100—an annual list of B.C.’s highest revenue gainers—surpassing $14 billion in annual revenue in 2024. However, the activewear brand is among the many being impacted by U.S. president Donald Trump’s tariffs as it disrupts global supply chains and economies. In particular, the tariffs have targeted China—a major production site for Lululemon—in addition to several Middle Eastern and Asian countries that are hubs for clothing manufacturing.
The layoffs come just weeks after the athleisure giant reported a dip in its core U.S. market and downgraded its annual earnings forecast. In a Q1 report released in June, the company stated that diluted earnings per share are now projected to be between US$14.58 and US$14.78 for the year, lower than the previous forecast of US$14.95 to US$15.15. Since announcing its Q1 results earlier in June, Lululemon shares have fallen nearly 29 per cent.
To deal with U.S. tariffs, the company is also planning modest price hikes across select product categories, as it reported in its first-quarter financial results. CFO Meghan Frank told The Canadian Press that these changes highlight the company’s efforts to navigate the challenges posed by Trump’s trade war and the resulting pressure on consumer spending in its key markets.
The move lands shortly after Lululemon was ranked 15th on Forbes’ 2025 list of “Canada’s Best Employers”. “This is not a decision we made lightly, and we are committed to supporting our employees through this transition,” the company’s statement read.