Peloton reveals plans to lay off 2,800 employees in bid to cut costs

Peloton reveals plans to lay off ii,800 employees in a bid to cutting costs

Barry McCarthy, the former CFO at Spotify and Netflix, will take over as the CEO of Peloton

Peloton is in the process of laying off roughly two,800 of its workers every bit John Foley, the fitness visitor's 10-year CEO, steps down in a bid to make up for its lost valuation, according to a Wall Street Journal study.

The company's stock price — which surged during the height of the pandemic — has been in a steep downtrend since January 2021 and has lost about 80 percent of its value.

The company is also overhauling its board and winding down the structure of its Peloton Output Park in Ohio. The report suggests that the do equipment company volition increase its reliance on third-political party vendors, and minimize its ain managed warehouses and delivery locations.

Barry McCarthy, former CFO at Spotify and Netflix will take over as CEO of Peloton, with expectations that his feel with content-driven subscription models volition be a benefaction for the fitness company. On the other hand, Foley volition still exist involved with Peloton and is taking upwards the role of executive chairman.

Recently, Peloton has been in the news, with rumours surrounding an Apple, Amazon or Nike acquisition being thrown effectually.

Peloton announced its comprehensive program to reduce operational costs and to bulldoze growth and profitability earlier today. The declaration states that the company aims to "reduce its planned capital expenditures in 2022 past approximately $150 million."

Source: Wall Street Journal