Peloton cuts 500 more jobs and shifts focus to growth

Peloton (PTON) is cutting another 500 jobs in the latest series of layoffs aimed at turning the ailing fitness equipment company on its head, employees were told on Thursday.

The cuts will affect around 12% of Peloton’s workforce.

The company will now remain with around 3,825 employees after its fourth round of layoffs this year. The company employed more than 6,700 people as of June 2021.

“The restructuring is complete with today’s announcement,” Chief Executive Barry McCarthy told CNBC on Thursday. “Now we focus on growth.”

McCarthy replaced Peloton co-founder John Foley in February to transform a company that was struggling in the wake of the pandemic.

McCarthy partnered with Amazon and Hilton and expanded into equipment rentals.

Peloton outsourced manufacturing of bicycles and treadmills to Taiwan in July.

Peloton’s stationary bikes and fitness classes have been popular during the pandemic, when gyms have been closed and people have stayed indoors. Peloton is now experiencing falling demand and ongoing supply chain issues after lifting most of the pandemic-related restrictions.

The company reported a loss of $1.2 billion last quarter, its sixth consecutive quarter of losses.

Peloton shares have lost three-quarters of their value this year.

https://www.ibtimes.com.au/peloton-cuts-500-more-jobs-shifts-focus-towards-growth-1839280?utm_source=Public&utm_medium=Feed&utm_campaign=Distribution Peloton cuts 500 more jobs and shifts focus to growth

Fry Electronics Team

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