Peloton to cut 500 jobs as turnaround efforts continue
Oct 5, 2022, 6:43 PM | Updated: Oct 6, 2022, 6:29 pm
(AP Photo/Jeff Chiu, File)
Peloton is cutting hundreds of jobs in a corporate reorganization of its stalled business as the pandemic-related surge ebbs.
The maker of high-end exercise equipment cut approximately 500 jobs, or about 12% of its workforce, Peloton said Thursday.
Peloton Interactive Inc. said it’s completed the vast majority of a restructuring plan begun in February. That plan included a new chief executive and a smaller store base.
“The changes we have made, combined with the performance of the business, are moving us closer to our fiscal year-end goal of break-even cash flow, with a renewed focus on growth,” said CEO and President Barry McCarthy.
Peloton experienced incredible sales growth during the height of the coronavirus pandemic. The New York-based company’s share price multiplied by more than five times 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 sales began to slow last year as the distribution of vaccines drew many people out of their homes and back into gyms. Thursday’s statement followed Peloton’s August announcement that it would cut 784 jobs, close its North America distribution network and shift delivery work to third-party providers. A push is also being made to sell its equipment to consumers through retailers including Amazon and Dick’s Sporting Goods.
The company is working to return to profitability. In its fourth quarter, Peloton lost $1.24 billion, stung by restructuring and other charges. Revenue dropped from $936.9 million to $678.7 million. Its annual loss for the fiscal year totaled $2.8 billion.
Peloton shares added 34 cents to $8.83 Thursday. The stock is down about 75% since the start of the year.
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