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Peloton to cut another 500 jobs as boss gives company six months to turn around
https://www.whatjobs.com/news/usa/us-business-news/peloton-to-cut-another-500-jobs-as-boss-gives-company-six-months-to-turn-around
By Hugh Fort in US business news, posted October 7, 2022
Peloton’s boss has admitted the company has just six months to become viable as another 500 jobs are lost.
Barry McCarthy has revealed the company will cut another 12 percent of its remaining workforce - a move he says will be necessary if the company is to survive.
The company now has six months to become profitable, and if that fails, McCarthy said it is likely it won’t be viable as a stand-alone company.
READ MORE: PELOTON TO SLASH 800 JOBS AND PUT UP PRICES AS IT FIGHTS FOR SURVIVAL
The cuts are the fourth round this year and leave the company with around 3,800 staff worldwide.
Its staff numbers have been more than halved in the last year.
It has eliminated another 600 jobs since June by various measures, including stores closing.
Mr. McCarthy said the latest round of redundancies is the company’s last move to reduce its operating footprint.
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Executives will now focus on increasing revenue.
He added the cuts are across the company, but the marketing department will be particularly badly hit.
He said the department was now too big for a company of Peloton’s size.
He said: “There comes a point in time when we’ve either been successful or we have not.”
“We need to grow to get the business to a sustainable level.”
READ MORE: PELOTON TO SLASH 2,800 JOBS AS CEO STEPS DOWN
Despite the losses, he said: “There is no ticking clock on our performance and even if there was, the business is performing well and making steady progress toward our year-end goal of break-even cash flow.”
The quarterly loss is the sixth in a row and features a $1.2 billion loss in the most recent quarter.
Demand for its bikes and treadmills has dropped rapidly, and the number of subscribers to its fitness classes as people continue to return to their pre-Covid routines.
An internal memo to staff said: “I know many of you will feel angry, frustrated, and emotionally drained by today’s news, but please know this is a necessary step if we are going to save Peloton, and we are.”
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