Fitness equipment maker and streaming company Peloton plans to cut 500 jobs as the struggling company aims to return to growth amidst the strenuous calls of recession.
According to various media sources, the cuts would amount to 12% of Peloton's workforce. The company has had multiple rounds of layoffs this year already. The company's stock is down about 75% this year.
The latest move adds Peloton to the growing list of companies like Meta, Google, Better.com, Snap and more, who have laid off staff in bulk, akin to the bulk hiring they did in previous years.
CEO Barry McCarthy offered his thanks to the employees laid off in a company statement," Restructuring a business requires difficult decisions that affect people’s lives. I’m grateful for the many contributions of those who have been impacted.
CNBC reported that Peloton’s recent strategic changes may have sparked speculation that it could be looking to sell itself. But as per McCarthy's statement issued, “I joined Peloton for the comeback story, not to sell the business.” He also added that the company would now be focused on growth.
The company plans to prove its moves, including equipment rentals and partnerships with Amazon and Hilton, which can help it grow.
McCarthy took over as CEO of Peloton earlier this year from co-founder John Foley and has overseen drastic changes to its business model as the company struggled after a sales boom earlier in the COVID-19 pandemic. A former Spotify and Netflix executive, he has pushed the company’s business further into subscriptions while broadening the availability of its products beyond Peloton’s direct-to-consumer roots.
“We need to grow to get the business to a sustainable level,” McCarthy said.
Image credit: Glassdoor