Peloton to Lay Off Around 500 Employees in Bid to “Save” The Company
Talk about a turn of the tides. Peloton, the flashy home fitness darling that blossomed during the pandemic, is now fighting for survival. In its fourth round of layoffs this year, Peloton on Thursday told The Wall Street Journal it would cut around 500 employees or 12% of its workforce. Peloton said this round of layoffs represents the final move in its larger restructuring plan. The cuts, according to a memo to staff from CEO Barry McCarthy seen by CNN, were necessary to “save Peloton.” McCarthy told the journal he’s giving the company six months to turn the ship around. If that fails, McCarthy said Peloton might not be able to continue as a stand-alone company.
The most recent layoffs touched multiple areas of the company but will reportedly be felt the most in the company’s marketing department. Once the layoffs are complete Peloton, will have around 3,800 employees worldwide, That’s less than half the total staff it employed during the same period last year.
Peloton, like other companies listed here, made massive investments during the pandemic on the backs of explosive growth. Wavering demand, supply chain shocks, and changing late pandemic consumer behavior, however, have exposed the short-sightedness of those efforts.
