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Peloton is cutting 20 percent of workforce as CEO steps down

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Peloton is reportedly cutting 20% of its workforce (2800 jobs) according to a press release from the company.

Peloton is replacing its CEO and losing about 2,800 jobs among other cost-cutting measures, according to a press release issued by the company. The job cuts amount to around 20 percent of the former pandemic darling’s corporate workforce, but will not affect the company’s lauded roster of instructors or fitness content. The news was first reported by the Wall Street Journal.

Peloton hopes the changes will boost profitability after waning demand for its connected fitness equipment have made it an acquisition target, with Amazon, Nike, and even Apple named as possible suitors. The company, once valued at $50 billion, plunged to around $8 billion last week before takeover rumors began to swirl.

Peloton co-founder John Foley is being replaced as CEO by Barry McCarthy, the former CFO of both Spotify and Netflix. Foley will become executive chair.

“I have always thought there has to be a better CEO for Peloton than me,” Foley told the WSJ. “Barry is more perfectly suited than anybody I could’ve imagined.”

Responding to rumors that the company was for sale, Foley said, “we are open to exploring any opportunity that could create value for Peloton shareholders.” Foley controls 80 percent of Peloton’s voting power so any deal would require his support.

Peloton’s other cost-cutting measures include winding down the $400 million factory it was building in Ohio, and a reduction in delivery teams and warehouse space allowing it to cut costs by nearly $1 billion this year.
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Sad. This company has excellent products but they've made some major blunders as a business.
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Some of the people leaving the company include their vice president of hardware engineering, Sam Bowen, and commercial operations executive, Rob Barker.

Peloton’s vice president of hardware engineering, Sam Bowen, and its commercial operations executive, Rob Barker, are leaving the company, according to a report from Bloomberg.

Bowen led the development of the company’s bikes, treadmill, heart-rate monitor, as well the not-yet-released Guide device, while Barker previously served as the CEO of Precor, a company bought by Peloton that provides workout bikes to gyms and hotels. In a note on LinkedIn announcing his departure, Barker said, “After 27 years in various roles at Precor, Amer Sports and Peloton, I am moving from being a full-time executive at one company to a fitness industry small entrepreneur and advisor. I will continue to focus where my passion and heart lies: the fitness industry and those companies that are “helping people live the lives they desire.”

The news of their departure — as part of what Bloomberg calls a “broad shake up” — comes just after Peloton CEO and co-founder John Foley announced that he’s stepping down and has been replaced by Barry McCarthy, a former CFO of Spotify and Netflix. Foley is moving into the role of executive chairman of Peloton. At the same time the company announced it would lay off about 2,800 employees, or around 20 percent of its workforce (along with the odd detail that their severance packages include a one-year Peloton subscription).
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Peloton is supplanting its CEO and losing around 2,800 positions among other expense cutting measures, as indicated by an official statement gave by the organization. The work slices add up to around 20% of the previous pandemic dear's corporate labor force, however won't influence the organization's commended list of educators or wellness content. Thae news was first revealed by the Wall Street Journal.
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