Peloton has decided to cut another 500 jobs in a move to curb their costs and remain competitive in the market. Previously, the company has already gone through two phases of lay-offs and has cut 2,800 positions. Moreover, the CEO of fitness equipment manufacturer stated that these job cuts were necessary for the company to return to growth.
Peloton is entering in partnerships to boost sales
Peloton CEO Barry McCarthy said in his interview to Wall Street Journal that this round of job cuts is the final significant move to put the business back on track. Moreover, Peloton’s CEO intends to make a leaner organizational structure. “The restructuring is done with today’s announcement. Now we’re focused on growth.” CEO Barry said in a statement. Alongside, the fitness equipment firm is entering in to several partnerships in retail and beyond. Peloton and Hilton announced a partnership which will put Peloton Bikes in the company’s hotel portfolio. Furthermore, Peloton made a deal with Amazon to sell its bike, guide, select accessories and apparel through Amazon U.S. This was the first time that the company started selling its goods outside of the Peloton site online.
Shakeup in top leadership
These latest job cuts came in wake of recent shakeup in Peloton’s leadership. Previously, the company announced that they have replaced founder John Foley with Barry McCarthy. Similarly, co-founder and Chief Legal Officer Hisao Kushia and Dara Treseder, SVP of Marketing, Communications and Membership also left the company. The new CEO has implemented multiple structural changes at Peloton. He initiated multiple rounds of job cuts in a bid to reduce costs and improve revenues. In addition, McCarthy has closed company-operated stores, outsourced manufacturing, and reduced inventory.
Peloton had a great run during the pandemic times and was one of the big success stories. Unsurprisingly, the closure of gyms and other fitness arenas forced the people to workout at home. Hence, this led to increase in sales of Peloton’s products and services. However, the demand faded out after easing in COVID-19 restrictions and company reported six consecutive quarters of losses.
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