Zwift claimed that the decision was taken to "invest more heavily in its product".

According to DCRainmaker, a total of 80 staff members - 15 per cent of its workforce - received an internal memo saying they will be laid off.

Last May, the company issued notice to 150 people, pausing plans for a new smartbike months after announcing them.

"After very careful consideration, we have taken the decision to make important changes to the organization," a Zwift statement to Cycling Weekly read.

"These changes mean we will regretfully be parting ways with a number of very talented colleagues.

"We are grateful for their contributions to Zwift and will do our best to support them in their transition.

"The changes made today impact teams across the business but some have been impacted more than others.

"Scaling back in some areas will allow us to invest more heavily in our product.

"The changes we have made will allow us to further increase the speed of development, adding greater value to our customers through new experiences and more engaging content."

Last week, the company announced its Olympic ambitions through the Olympic Esports Series Finals.

Scheduled to be held from June 22 to 25 in Singapore, the event will feature a total of 16 finalists - eight men and eight women - selected based on their performances at the 2023 UCI Cycling Esports World Championships will battle it out at the International Olympic Committee (IOC) event.

"The Olympic Movement brings people together in peaceful competition," David Lappartient, chair of the IOC Esports Liaison Group and UCI President, said.

"The Olympic Esports Series 2023 is a continuation of that, with the ambition of creating more spaces to play for both players and fans of elite competition."

UCI and Zwift have hosted three Cycling Esports World Championships so far.

Denmark’s Bjørn Andreassen and Loes Adegeest of the Netherlands were crowned champions in the latest event held last month.

The Olympic Esports Series is part of the IOC’s Agenda 2020+5, that aims at developing esports within the Olympic movement.

The inaugural series was held before the Tokyo 2020 Olympic Games with the IOC claiming over 250,000 participants from 100 countrie.

"I’m thrilled to continue our esports journey with the IOC and once again deliver cycling events in partnership with the Union Cycliste Internationale (UCI)," Zwift chief executive and co-founder Eric Min said.

"The live Olympic Esports Series finals in Singapore will provide a perfect backdrop for some of the very best cycling esports racers to showcase this exciting new discipline."