I cannot explain it......but i have hated this company for ever........they charge thousands for you to ride a bike that goes fucking nowhere......and they use boney M as their song a coked out seventies band ......what a fucking scam compnay .........
Peloton slashes 500 jobs - 12% of its workforce - in last-ditch attempt to slash costs and raise profits as CEO says pandemic darling has six months to prove it can survive on its own or it 'won't be viable as a company'
- The 500 job cuts were announced to staff on Thursday
- At its peak in 2021, the company had more than 8,600 employees, but now it has dropped to 3,800 employees globally
- The news comes as the company has faced six quarters of losses in a row
- This is the fourth round of layoffs this year, alone
- CEO Barry McCarthy warns if there isn't significant turnaround, Peloton likely wont be viable as a stand-alone company
Peloton told some 500 workers on Thursday that they would be out of a job in a last ditch effort to save the company.
The news of cutbacks is the fourth this year for the company.
CEO Barry McCarthy says that the move is necessary after recent financial hardships.
'There comes a point in time when we've either been successful or we have not,' McCarthy said in an interview with the Wall Street Journal.
'We need to grow to get the business to a sustainable level,' the CEO said.
Peloton has faced six straight quarters of losses in a row.
McCarthy said he is giving the company six months to try to stand independently before making acknowledging that they won't be able to stand alone.
'I know many of you will feel angry, frustrated, and emotionally drained by today's news, but please know this is a necessary step if we are going to save Peloton, and we are,' McCarthy said in an internal memo to employees provided by the company to the Wall Street Journal.
Speculation is brewing over McCarthy's comments, including some suggesting that the company could merge or be bought by a larger entity.
Peloton could have widespread appeal to companies already in the fitness space and those looking to branch out.
It is unclear what will happen to Peloton bikes, treadmills, and interactive equipment if the company goes under.
Despite the series of unfortunate financial events, McCarthy has expressed optimism about the future of the company.
The CEO told the Wall Street Journal that they had significantly cut losses through the job cuts and the outsourcing of manufacturing.
Peloton also reportedly ended June with $1.25 billion in cash reserves and a $500 million credit line.
One of the next tasks for McCarthy is finding a chief marketing officer after the departure of Dara Treseder, the former global head of marketing.
Treseder is one of the key figures in the deal to put Peloton's inside Dick's Sporting Goods stores, as well as the sale of Peloton equipment on Amazon.
An original bike for sale on Amazon costs just a little under $1,500.
Earlier this year, the company announced a pause on the manufacturing of bikes and treadmills due to the losses.
When that announcement was made, Peloton's shares were selling at just over $24 a pop. Current shares hover right around $8.
Before the pandemic began, the company had a mere 3,700 employees.
As more people shifted to at home workers, increased demand prompted the company to bring in nearly 5,000 additional workers.
At one point, Peloton had planned to open a factory for production in Dayton, Ohio, but the $400 million idea was later scrapped after ground had been broke.
In February, the company announced some 2,800 layoffs, as well as the replacement of the company's founder, John Foley, with McCarthy.
In September, founder Foley resigned from the company due to the reported $1.2 billion losses the company was facing.
Foley, 51, launched the fitness firm in 2012, with the first studio in Manhattan in which instructors led classes that were also beamed into members' homes.
After the company went public in September 2019, shortly before the COVID-19 pandemic, it reached an all-time high in stock price at $162 in December 2020.
A surge of popularity during the pandemic ensued as public gyms closed and millions began to exercise in their homes.
But the high was swiftly followed by a collapse in demand - not helped by scandals surrounding safety, with the recall of their treadmills after a child died, and bad publicity from a much-mocked Christmas advert, and Sex and the City's male lead Mr. Big dying from a heart attack following a Peloton class.
A source told Yahoo Finance that Foley - who along with his wife and other insiders controls close to 60 percent of Peloton's voting shares - may sell his stake in the company after a cooling-off period.
Foley will be succeeded as board chair by Karen Boone, a former executive at Restoration Hardware and a Peloton board member since 2019.
Just last week, the fitness equipment maker announced that they would be installing Peloton bikes in Hilton hotels around the country in a major push to create buzz and sell more products.
Betsy Webb, global vice president of Peloton's commercial branch, said she first used a Peloton while staying at a hotel and that she was 'immediately hooked.'
'We recognize the importance for our members to maintain their wellness routines while on the road, with data showing over 1.6 million Peloton rides completed globally on Peloton Bikes in hotels in the past year,' Webb said.
'So, we are thrilled to be working with Hilton, allowing us to meet the needs of our current members, while also enabling potential new members to experience Peloton for the first time.'
These recent moves by Peloton hope to revitalize growth within the company.