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Fitness Equipment Maker Peloton Lays Off Around 500 Staff To Save Its Struggling Business: Report

  • Peloton Interactive Inc NASDAQ:PTON is reportedly laying off a significant number of employees for the fourth time this year to reverse its increasing losses and save the struggling business.
  • Chief Executive Officer Barry McCarthy took the company's reigns in February and said he is giving the unprofitable company about another six months to turn itself around significantly.
  • If the company fails to turn around, Peloton likely isn't viable as a stand-alone company, the Wall Street Journal reported, citing the CEO.
  • The struggling fitness-equipment maker plans to cut about 500 jobs, roughly 12% of its workforce, leaving the firm with around 3,800 employees, less than half of what it had in 2021.
  • In July 2022, the company announced exiting all owned manufacturing, which involved reducing 500 employees in Taiwan.
  • In August 2022, PTON reduced 530 employees from its North American delivery workforce teams and 250 Member support positions in North America.
  • The company has reported six straight quarterly losses, with $1.2 billion in the most recent quarter. 
  • Demand for Peloton's bikes and treadmills has plunged as people shift to pre-COVID routines.
  • Peloton last week announced to start selling its exercise equipment at Dick's Sporting Goods Inc NYSE:DKS stores as the latest effort to attract new customers.
  • Price Action: PTON shares are up 5.24% at $8.94 on the last check Thursday.
  • Photo Via Company

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