Whoop
- Whoop valued at US$3.6bn last year
- Company recently launched Whoop 4.0 platform
Whoop has become the latest fitness technology company to cut jobs in response to lower demand in a challenging economic climate, reducing its headcount by 15 per cent.
The company, which creates wearable devices and supporting software for its community members, was founded in 2012 and has since grown to 630 employees.
A US$200 million Series F funding round last year gave Whoop a valuation of US$3.6 billion and its investors include National Football League (NFL) star Patrick Mahomes, golfers Rory McIlroy and Justin Thomas, as well as National Basketball Association (NBA) All-Star Kevin Durant, through his investment firm ThirtyFive Ventures.
However higher inflation and the rising cost of living has caused some fitness enthusiasts to review their monthly subscription to Whoop’s membership programme and has reduced the scope for growth.
‘The current macro environment has created new challenges and uncertainty, and we are committed to building a durable business that is able to withstand whatever economic climate we find ourselves in,’ Whoop said in a statement to Front Office Sports. ‘A reduction like this is never easy and we sought to ground this process in both empathy and compassion.’
Connected fitness platforms Zwift and Peloton have both made staff redundant in recent months, partly due to the same economic pressures facing Whoop, but also due to lower demand in a post-pandemic world. Tonal also announced it was reducing its workforce by 35 per cent earlier this week.
However most industry observers expected the connected fitness market to grow in the long-term following a period of correction.
