Peloton to cut 500 more jobs in effort to save the company
BNN Bloomberg
Peloton Interactive Inc. is laying off a significant amount of employees for the fourth time this year as part of an effort to save the struggling business, Chief Executive Officer Barry McCarthy told staff on Thursday.
The fitness technology company is cutting its workforce by roughly 500 globally, or 12 per cent, leaving it with about 3,825 employees. McCarthy said the company is making the move, along with other reductions in operating expenses, in order to reach the break-even point on cash flow by the end of fiscal 2023.
“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 a memo. “Our goal is to control our own destiny and assure the future viability of the business.”
Peloton shares rose 4.1 per cent to US$8.84 at 9:46 a.m. in New York.
