Boston-based Hydrow Inc., a fitness technology company that racked up investments from celebrities like Lizzo and Justin Timberlake, laid off 35% of its workforce this week as interest in at-home fitness wanes.
Hydrow employed more than 200 people before the layoffs, a company spokesperson said, which means around 70 employees were impacted. The layoffs affected people across all departments at the company.
“Hydrow has reached a stage of growth and size that allows us to make a strategic choice for growth. This decision involves a strategic shift in our workforce,” Bruce Smith, founder and CEO, said in an emailed statement. “In the wake of the unprecedented economic circumstances we’re collectively facing, Hydrow has made the incredibly difficult decision to conduct a reduction in force in an effort to right-size the business.”
Hydrow has raised over $250 million in funding, including its most recent $55 million round in March. Besides Lizzo and Timberlake, its celebrity investors include comedian Whitney Cummings and Green Bay Packers quarterback Aaron Rodgers. It even brought on Kevin Hart as its creative director.
The company sells an at-home rowing machine for $2,495 and a smaller version for $1,495. Customers are also encouraged to purchase an $38 per month membership, which allows users track their stats, access rowing workouts and connect with fellow users.
The company saw a big boost from lockdowns during the Covid-19 pandemic, when demand for at-home fitness equipment soared. Now, people are starting to rely less on exercising at home.
Last summer, a report from Jefferies found that traffic at gyms was at 83% of its January 2020 level. Earlier this year, Peloton, another at-home fitness company, announced it would halt production of its bikes and treadmills as demand slowed.
Hydrow is making its own pivot to stay afloat.
“This strategic pivot will allow us to reduce our overall operating costs and lean into our amazing group of members to support the growth of our community to deliver the same extraordinary experience that our members have come to expect from Hydrow,” Smith said.
Smith said Hydrow is “going to be in a very strong position when the IPO window opens again,” but is also considering all of its options.
“There are a number of very attractive strategic options as well. We have a lot of flexibility from great investors to make the best decision for the company when the time is right,” Smith said.
Hydrow isn't the only Bay State fitness tech company feeling the pinch: Whoop, a wearable tracker tech unicorn, cut 15% of its corporate team on Thursday.
