It’s been another wild 24 hours in the seemingly never-ending roller coaster that is Peloton’s fall from it’s pandemic peak. On Friday, the indoor exercise bike brand’s new CEO Barry McCarthy announced he was cutting 780 jobs. At the same time, Peloton will be raising its prices. All of this comes the day after the brand lost a bid to throw out a consumer lawsuit against the brand over the music offered in its online fitness classes. Jobs cut
McCarthy, who was recently brought on to help revive Peloton from its post-pandemic crash, announced the lay-offs in a memo to staff. Like most bad news, the announcement landed on Friday. In the memo, obtained by Bloomberg , the CEO said the move is intended to cut costs and increase cash flow at the fitness brand.
“We have a clear strategy to drive the long-term, sustainable future of this company,” McCarthy’s memo reads. “Job one is generating free cash flow by right-sizing our inventory commitments and converting many of our fixed costs to variable costs because that cost structure better aligns with the seasonal revenue of the business.”
Translated from buzzwords to plain that means Peloton will be closing many of its retail stores, reducing support staff in North America and, after outsourcing its production and shuttering factories earlier this year, moving most of its warehousing and delivery in North America to a third-party model.
The plan includes a “significant and aggressive reduction of Peloton’s retail footprint,” as well as significantly cutting its […]