Peloton Cutting 500 More Jobs as it Seeks to Spur Growth

Peloton is cutting another 500 jobs in a move that CEO Barry McCarthy said should position the struggling fitness equipment maker to return to growth. The cuts, which amount to about 12 percent of Peloton’s workforce, mark a pivot point for the company, McCarthy told CNBC on Thursday. Peloton already has had multiple rounds of layoffs this year. McCarthy said the company now has to prove its recent spate of strategy changes, including equipment rentals and partnerships with Amazon and Hilton, can help it grow.

Total Retail's Take: Following a spike in business at the outset of the pandemic as gyms were closed and people looked for ways to work out at home, Peloton has struggled to maintain that momentum. In addition to cutting costs (i.e., eliminating 500 more jobs), Peloton is growing its distribution model beyond direct-to-consumer sales on its website. For example, this week Peloton announced it would put its bikes in every Hilton-branded hotel in the United States. This comes on the heels of announced partnerships to sell Peloton equipment in Dick’s Sporting Goods stores and on Amazon.com. The moves are intended to get Peloton in a better financial position and enable it to once again grow.