Peloton slashes 500 more jobs as it pins hope on turnaround plan
Peloton said it plans to slash 500 more jobs, as chief executive Barry McCarthy gives the company six months to turn its run of bad luck around.
The dramatic move knocks about 12 per cent from the exercise bike maker’s headcount to roughly 3,800 employees globally, and adds to the tide of staff cuts that have been seen in recent months.
As first reported by the Wall Street Journal, the Peloton boss said the firm remains unprofitable and needs to turn itself around in the next six months or face existential threat as a stand-alone company.
In an announcement to staff, McCarthy, who joined Peloton in February, said the cuts would be felt heaviest across marketing teams.
The stay-at-home stock boomed during the pandemic thanks to gym closures and lockdown hobbies driving consumers to the brand.
However, the success was short-lived and shares have tanked nearly 90 per cent in the last year, shaving about $47bn off its market cap since the start of 2021.
Peloton has posted straight losses for the last 18 months, despite its attempt to rally momentum.
The firm recently started selling products on Amazon and penned a US deal with Dick’s Sporting Goods.
Peloton is also reportedly considering a sale of its commercial fitness firm Precor, which it snapped up back in April 2021.
Peloton confirmed the news in a statement, but said: “A key aspect of Peloton’s transformation journey is optimizing efficiencies and implementing cost savings to simplify our business and achieve break-even cash flow by the end of our fiscal year. “
“Decisions like this are incredibly difficult and Peloton is doing all we can to help our impacted colleagues. As we pivot to growth, today marks the completion of the vast majority of our restructuring plan we began in February 2022.”
McCarthy told CNBC: “I’m feeling about as optimistic as I’ve ever felt,”