Peloton slashes over 500 jobs as part of its turnaround strategy after massive loss

Peloton plans to slash several hundreds of jobs as the company continues its turnaround effort for its stalled business, especially after the pandemic surge ebbs.

As confirmed by Peloton Interactive Inc, the company is cutting approximately 500 jobs, which consitutes around 12% of its workforce.

The latest move by the American high-end exercise equipment maker comes as a part of the massive corporate restructuring plan, which has been in place since February. The plan also includes the appointment of a new chief executive and a minor store base.


During the height of the COVID-19 pandemic, Peloton experienced incredible sales growth as the company’s shares rose more than 400% in 2020. Its top-selling products, like bikes and treadmills, became popular among customers, who pay a monthly fee for its interactive workout sessions.



Unfortunately, the New York-based company’s sales started to fall last year, especially after the distribution of vaccines as people started to return to gyms. To avoid the situation, the company has gradually started working on its reconstruction effort this year.

FAQs:

What steps has Peloton taken to reorganise its stalled business?
Peloton has announced to cut down 784 jobs, shut down its North American distribution network, move its delivery task to third-party service providers, sell its exercise equipment through numerous retailers, including Dick’s Sporting Goods and Amazon.

How much loss did Peloton experience during this fiscal year?
Since the company has started working to get back to profitability and its restructuring efforts, it lost $1.24 billion in its fourth quarter. The company lost $2.8 billion in this fiscal year, whereas its revenue fell from $936.9 million to $678.7 million.