Lululemon cuts 7 jobs in fabric team shake-up amid repeated sheerness complaints

Premium athleisure brand Lululemon has restructured its fabric development team and laid off seven employees amid a string of sheerness controversies.

According to Bloomberg, Lululemon cut seven positions in August when it reorganized its raw materials development team, relocating some of that work closer to key suppliers and redeploying staff accordingly.

In a statement, the company said it had "restructured the raw materials development team to place certain capabilities closer to our suppliers," adding that the move "reflects where work can be done most effectively and supported best." It described the reorganization as part of a broader effort to align work and personnel spread across different parts of the world.

The restructuring took place before CEO Heidi O'Neill took office. Lululemon's official website currently lists job openings for raw materials development roles based in Taipei, Taiwan, and Ho Chi Minh City, Vietnam.

The moves are seen as part of an effort to strengthen supply chain execution and prevent recurring product defects. The company has of late been caught up in a series of sheerness complaints.

Lululemon launched its Get Low collection earlier this year, but consumers quickly complained that the leggings fabric was so thin it left little to the imagination. Reviews on the online store included comments such as "underwear lines are completely visible," "the seat is totally see-through," and "the moment you bend over, everything shows."

Lululemon pulled the product from its North American online store just three days after launch. It later resumed sales after adding a note advising customers to "order one size up and wear seamless, nude-colored underwear."

In July 2024, the company also halted sales of its new Breezethrough leggings after shoppers complained the design looked odd. Some customers said the cut created a "whale tail" effect — making it appear as though the top of a thong was visible above the waistband.

The repeated quality controversies have also fueled calls for management accountability. Chip Wilson, the company's founder and one of its largest shareholders, criticized the brand, saying, "I've thought for a while that Lululemon had lost its cool, but now it's become clear that the company has completely lost its way as a leader in functional apparel."