Business In News
Peloton will eliminate 500 jobs in its latest round of layoffs, which began in February 2022 with cuts of 2,800 positions. While the layoffs will be felt companywide, they will heavily impact the marketing department.
In an interview with the Wall Street Journal, Peloton CEO Barry McCarthy noted that this recent elimination of approximately 12% of the company’s workforce, after cutting nearly 1,300 jobs since July, is the “final significant move” to salvage the business.
“There comes a point in time when we’ve either been successful or we have not,” said McCarthy. “We need to grow to get the business to a sustainable level.”
These latest job cuts follow a recent shakeup in the fitness brand’s leadership. On Sept. 13, the company revealed the resignations of Co-founder and Executive Chair John Foley and Co-founder and Chief Legal Officer Hisao Kushi. Dara Treseder, SVP of Marketing, Communications and Membership, left the company a few weeks later to join software provider Autodesk as Chief Marketing Officer.
In addition to creating a leaner company, Peloton has been expanding its reach through a number of partnerships in retail and beyond. On Oct. 3, Peloton and Hilton revealed a new partnership that would put Peloton Bikes in the company’s entire U.S. hotel portfolio of 5,400 properties. Peloton also is using the partnership to court new members, offering a 90-day trial subscription to the Peloton App for Hilton Honors members who are first-time users of the fitness program.
Peloton also entered a partnership with DICK’S Sporting Goods in late September. The deal has brought Bike, Bike+, Tread and Guide products, as well as select accessories, to more than 100 DICK’S stores and online at DICKS.com. The deal reflected DICK’S status as the only brick-and-mortar retailer outside of Peloton’s own showroom footprint to carry this selection of the brand’s connected fitness equipment.
In August, Peloton made a deal with Amazon to sell its Bike, Guide, and select accessories and apparel through Amazon U.S. The partnership with Amazon was the fitness company’s first step in selling its goods outside of the Peloton site online, inside sales channels and showrooms.