Peloton is cutting 2,800 jobs, which represents 20 percent of its workforce.
A new report from The Wall Street Journal reveals that the exercise equipment company is preparing to replace long-term CEO and founder John Foley with former Spotify CFO Barry McCarthy. It will also pursue various cost cutting measures, as the company feels the pinch from slowing demand after a pandemic-related boom.
Those cost cutting measures will reportedly involve Peloton cutting 20 percent of its workforce, though these will all be corporate positions. None of the company’s frontline instructors are said to be involved in the cull.
Back in January, an internal document revealed that the company was struggling to shift its stock of sophisticated exercise equipment, blaming increased competition and increasingly hard up customers balking at its pricing.
These struggles apparently led the company to temporarily halt Bike+ production in December and Tread+ production in January.
What’s more, it’s being claimed that the £450 Peloton Guide – essentially a camera that fits to your TV and tracks your workout form – has failed to capture as much interest as the company was expecting.
Peloton shares have slumped in recent weeks, and a company that was worth $50 billion at its peak a year ago is now worth a mere $8 billion. This precipitous drop is said to have made it an acquisition target for the likes of Apple, Amazon, and Nike, all of whom have their own smart fitness plans.