Peloton cutting about 400 jobs worldwide; CEO McCarthy stepping down
Peloton is cutting about 400 jobs worldwide as part of a restructuring effort and its CEO Barry McCarthy is stepping down after two years as the company continues to work on turning around its business. Shares jumped more than 11 per cent before the market open on Thursday.
Peloton has been working on a significant rebranding since last year, shifting its identity as a seller of luxury exercise bikes and equipment to heath technology for all.
The New York company experienced incredible sales growth during the height of the coronavirus pandemic. Its share price multiplied by more than five times in 2020 amid lockdowns that made its pricey bikes and treadmills popular among customers who pay a monthly fee to participate in interactive workouts.
But sales began to slow in 2021 as vaccines allowed people to roam more freely from their homes, including visits to the gym.
The company lost USD 1.26 billion in the fiscal year ended in June and an additional USD 350 million in the six months ended in December. Free cash flow, or the money left over after paying the costs of running the business, was a negative USD 470 million in fiscal 2023.
Peloton Interactive Inc. said Thursday that the job reductions amount to approximately 15 per cent of its global headcount. The restructuring efforts, which are expected to lower its annual run-rate expenses by more than USD 200 million by fiscal 2025's end, also include continuing to close retail showrooms.
The job cuts
