Specialized announced late Wednesday that it would be carrying out layoffs of eight percent of its global workforce.
This news comes as the cycling industry tries to adjust from the pandemic boom to the developing global recession. Specialized said as much in its press release, stating “With the global economy changing faster than anticipated and rapid changes within cycling, the organization adjustment will allow the brand to be adaptive, whilst still investing in innovation.”
The Specialized press release, reported by Bicycle Retailer, included a statement from Specialized CEO Scott Maguire that the staffing change was part of a larger transformation at the California-based brand.
“We are transforming the company around our purpose to Pedal the Planet Forward. Our priority is to better serve
riders, retailers, and communities and to be the best place for our teammates to innovate and grow. The time is now to adapt to the current environment and ultimately led us to make some extremely tough decisions today. I want to
recognize those teammates who departed and thank them for all their contributions, hard work, and dedication to
Specialized. We are focused on ensuring that they are fully supported during this difficult time. It may be tough to see in the moment, but the future of cycling and the future of our brand is bright.”
– Scott Maguire, Specialized CEO
Specialized isn’t the first, or only company in the cycling industry to use layoffs as a tool to adjust to the changing economy. Zwift, Wahoo and Strava have all reduced their workforces recently. It’s not just tech-based company, either. Publishing giant Outside substantially reduced its workforce. Giant is experiencing its own supply change issues while several brands pulled back from racing programs as 2021 ended.