Peloton will reduce around 12% of its personnel in its fourth wave of layoffs this year, the firm said on Thursday.
The manufacturer of premium workout equipment will have about 3,800 employees worldwide after the 500 job losses, which is fewer than half the number of people the business employed at its height last year.
Optimizing efficiency and implementing cost savings to streamline the operations and reach break-even cash flow by the end of the fiscal year are essential components of Peloton’s transformation path, a company spokeswoman said in a statement.
Also, Peloton has been making an effort to adapt its operations to the present market after seeing phenomenal sales growth during the pandemic’s peak.
In the midst of lockdowns that made its bikes and treadmills popular among clients who pay a monthly charge to take part in its interactive workouts, the New York-based company’s shares increased by more than 400% in 2020.
However, Peloton’s sales started to decline last year as a result of the widespread vaccination campaign, which encouraged people to return to the gym.
This year, the corporation has consistently engaged on its reorganization initiatives. It announced in August that it would eliminate 784 positions, shut down its North American distribution network, and outsource its delivery services.
Additionally, there is a push to offer its products to customers via online retailers like Amazon and Dick’s Sporting Goods.
Nevertheless, the business is attempting to become profitable again. Peloton lost $1.24 billion in the fourth quarter due to restructuring and other costs.
According to a story in the Wall Street Journal, which broke the news, chief executive Barry McCarthy, who came over in February, will give the underperforming company another six months or so to drastically turn itself around. If that fails, Peloton definitely isn’t feasible as a separate company.
