$Lululemon Athletica (LULU.US)$ Yoga clothing giant Lululemo...

$Lululemon Athletica (LULU.US)$ Lululemon, the yoga apparel giant, unexpectedly announced layoffs by closing one of its warehouses in Washington and laying off 128 people. Many people say this is not a large number, but when Alibaba had a workforce of over 200,000 employees, they also started with layoffs of thousands.
Layoffs are not about the number of people, but about the trend. That's the most important thing.

In the past, there was a focus on hiring and offering high salaries to attract talent. Now, not only are they not hiring, but they are also reducing staff. What does this indicate? If you think about it, you'll understand that expectations for the future have changed. You should know that lululemon's warehouse space has increased from 1.12 million square feet to 4 million square feet in just four years. The rapid expansion period is over, and now they need to make adjustments. If companies like Amazon are laying off employees, what can be said about lululemon?

In previous issues, we said that lululemon has entered a new era. This year, its revenue exceeded $10 billion, and lululemon has entered a single-digit growth era. Efficiency has become more important, whether it's employee efficiency or warehouse logistics efficiency, they all need to be streamlined. Not only should we not waste money, but also make every penny count. The layoff in the warehouse this time is also about merging two warehouses.

Not only lululemon, but also Nike, a financially powerful company, announced a layoff plan last year. The total number of layoffs is about 2%, which is more than 1,600 people. They have already laid off 740 people. This layoff plan is to save 2 billion US dollars annually. In simple terms, after the epidemic, business has become more difficult, and all industries have started to cut costs.