Online virtual cycling platform Zwift announced on Monday a workforce reduction, its fourth in less than two years, and the resignation of recently hired Co-CEO Kurt Beidler – a key hire poached from Amazon to turn the business around.

The exact number of staff released was not revealed,but it is rumored to be above 100 and comes on the heals of a 15% staff reduction in March 2023 that left the struggling software technology company with about 450 employees.

With Co-CEO Kurt Beidler leaving barely a year after coming on-board, co-founder Eric Min will now resume his role as the sole CEO to try and turn around the company he started. Beilder was in charge of Zwift’s day-to-day operations, including product development, technology and business – all areas that Minn has previously acknowledged were not his forte.

Simply announced on the company’s online forum, the official statement reads, “Zwift remains a healthy, global business with a passionate community. We have seen accelerated growth over the last year but in the current environment, we must focus on sustainable and efficient growth. Zwift will be more agile and focused on delivering great things for our community.” 

Adding “At the same time, [post pandemic] growth has not rebounded at a fast enough pace to justify all of the investments that we have been making. As a result, we are taking action to become leaner with a continued focus on delivering great experiences for our community.” 

As a venture capital/private equity funded company, Zwift’s slow growth and high operating/development costs do not sit well with investors looking for quick high rate of return. Growing the business (attracting new riders) is becoming more and more challenging by the day, and was not helped when Zwift lost the UCI Esports Cycling World Championships to competitor MyWhoosh a few months ago. Now Minn must rightsize the business, reduce costs dramatically and align expenses with realistic revenue/growth projections – all before funding dries up and investors bail out.

To quote legendary cycling commentator Phil Ligget, “That’s a big ask.”

Photo Credit: Zwift

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