Peloton will remove 500 jobs as its rescue initiatives continue.
As the pandemic-related spike wanes, Peloton is restructuring its stalled business by eliminating hundreds of workers.
Peloton announced Thursday that the manufacturer of high-end exercise equipment had slashed 500 jobs, or around 12% of its employees.
According to Peloton Interactive Inc., a restructuring process that was started in February has been completed to a large extent. That strategy included a new CEO and a reduced shop base.
With a renewed focus on growth, the adjustments we have made and the company's performance are bringing us closer to our fiscal year-end objective of break-even cash flow, according to CEO and President Barry McCarthy.
During the height of the coronavirus outbreak, Peloton had remarkable sales increase. In the midst of lockdowns that made its bikes and other products unavailable, the New York-based company's share price increased by more than five times in 2020.
Customers who pay a monthly subscription to engage in its interactive workouts are drawn to the popular treadmills.
However, sales started to decline last year as a result of individuals returning to the gym due to the vaccination campaign. The announcement on Thursday came after Peloton said in August that it will eliminate 784 positions and shut down its North American distribution network.
and delegate delivery tasks to outside companies. Additionally, there is a campaign to offer its equipment to customers through online merchants like Dick's Sporting Goods and Amazon.
The business is attempting to become profitable again. Peloton lost $1.24 billion in the fourth quarter due to restructuring and other costs. From $936.9 million to $678.7 million was lost in revenue. For the fiscal year, it lost $2.8 billion on an annual basis.
On Thursday, Peloton's stock rose 34 cents to $8.83. Since the start of the year, the stock has decreased by roughly 75%.