Approximately 125 Specialized employees were put off today, effective immediately, as the American bike company reduced its global workforce by 8%, citing economic and industry challenges.
Outside, Zwift, Wahoo, Strava, Rad Power Bikes, and Pearl Izumi have all’restructured’ in reaction to economic shifts or expansion strategies during the last year.
This current round of layoffs comes only weeks after Specialized abruptly terminated the contracts of the majority of its ambassadors and other contracted staff, sparking some social media outrage. An anonymous insider told Cycling Weekly that this choice will save the corporation millions of euros.
Earlier in 2022, Specialized’s founder, Mike Sinyard, stepped down as CEO after 48 years in charge, and was succeeded by former Dyson executive Scott Maguire. The acquisition of UK store Rutland Cycling in the summer resulted in some layoffs, and Specialized hired former Nike VP David Schriber to manage its marketing team in the fall. Under his leadership, the company intends to “service new riders with new products in new channels at a larger scale.”
The layoffs announced on Wednesday are part of this new vision as well as a reaction to the economy.
Specialized claims that the organizational reform will allow the brand to be adaptive, citing “faster than expected” economic changes as well as “rapid changes” inside the cycling sector.