Peloton to cut 12% of workforce in fourth round of layoffs this year
Peloton is planning to cut about 12% of its workforce in its fourth round of layoffs so far this year, the company announced on Thursday.
The 500 job cuts will leave the maker of high-end exercise-equipment plans with roughly 3,800 employees globally, less than half the number of people the company employed at its peak last year.
“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,” a company spokesperson said in a statement.
Peloton has been attempting to adjust its business to the current market after experiencing incredible sales growth during the height of the pandemic.
The New York-based company’s shares surged more than 400% in 2020 amid lockdowns that made its bikes and treadmills popular among customers who pay a monthly fee to participate in its interactive workouts.
But Peloton’s sales began to slow last year as the distribution of vaccines sent many people out of their homes and back into gyms. The company has steadily worked on its restructuring efforts this year. In August it announced that it would cut 784 jobs, close its North America distribution network and shift its delivery work to third-party providers. A push is also being made to sell its equipment to consumers through various retailers, including Amazon and Dick’s Sporting Goods.
The company is working to return to profitability. In its fourth quarter, Peloton lost $1.24bn, stung by restructuring and other charges.
Chief executive Barry McCarthy, who took over in February, will give the unprofitable company another six months or so to significantly turn itself around and, if that fails, Peloton probably is not
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