[Asia Economy New York=Special Correspondent Joselgina] American fitness equipment manufacturer Peloton announced on the 6th (local time) that it will lay off an additional 500 employees, equivalent to 12% of its workforce, as part of cost-cutting measures following massive losses, according to the Wall Street Journal.
According to the report, this layoff is the fourth this year. Peloton, which experienced rapid growth during the COVID-19 pandemic, has seen a sharp decline in performance this year due to a sudden drop in demand and market stagnation, leading to consecutive restructuring announcements.
With the additional layoffs, Peloton’s workforce will be reduced to around 3,800 employees. The WSJ reported that this is less than half the size of the workforce during last year’s business expansion period.
Barry McCarthy, Peloton’s CEO, emphasized that this layoff is the final phase of restructuring aimed at reducing operating costs. He also stated that the company will focus on growth and profitability going forward. Recently, Peloton attracted market attention by announcing a partnership with Amazon, ending its exclusive sales structure. Additionally, it plans to install exercise bikes in Hilton brand hotels across the United States.
CEO McCarthy explained, “We see a lot of evidence that Peloton will succeed,” and said that by significantly reducing operating costs through layoffs, manufacturing outsourcing, and inventory reduction, the company has lowered the risk of financial difficulties. He also mentioned that short-term growth targets remain achievable.
In a message to employees following the layoff news, he acknowledged, “I know many of you will feel anger, frustration, and emotional exhaustion from today’s news,” but asked them to understand that “this is a necessary step for Peloton’s normalization.”
Meanwhile, on the New York Stock Exchange this afternoon, Peloton’s stock price was trading at around $8.88, up 4.53% from the previous close.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
