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Equinox-owned SoulCycle, known for its indoor cycling and spinning workouts, is closing 19 of its 83 studios in the U.S. and Canada.
SoulCycle CEO Evelyn Webster told employees the news on Friday, adding that the closures will result in some layoffs. CNN reported that around 75 of the company’s 1,350 employees will be laid off.
“The timing was appropriate to look at our studio footprint by market to understand whether we continue to believe that we had indeed oversaturated some markets,” Webster said.
Webster stated the company does intend to relocate some employees from the affected locations in New York, California, Massachusetts, Illinois, Florida, Georgia, Washington, Toronto, and Washington, D.C.
A SoulCycle spokesperson told Business Insider that the downsizing was partially based on “shifts as a result of the pandemic.”
- In early 2020, SoulCycle launched a connected fitness bike to better compete with companies like Peloton.
- That year, it recorded a $350 million loss due to pandemic-related closures.
- By May 2021, SoulCycle saw its New York membership sales increase 55%. Six of the 19 closures are in New York.
- By July 2021, more than 50% of SoulCycle’s locations were again open.
Fitness Falls
SoulCycle isn’t alone. On Friday, Peloton CEO Barry McCarthy wrote in a letter to employees stating the company would eliminate 784 jobs and increase prices for its products. In July, Peloton announced it would exit its owned-manufacturing operations.
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