Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

Fitness Giant Peloton To Cut 2,800 Jobs And Replace Current CEO

By Cristian Bustos. Originally published at ValueWalk.

Peloton fitness apps Peloton Transforming Fitness Franchises

Peloton Interactive Inc (NASDAQ:PTON) is set to cut 2,800 jobs —about 20% of its workforce— and appoint ex-Netflix Inc (NASDAQ:NFLX) Barry McCarthy as CEO as of Tuesday. The move is intended to revive the flailing company.


Q4 2021 hedge fund letters, conferences and more

Bolstering

As reported by CNN Business, Peloton is undergoing a major restructuring program that includes cutting jobs and replacing CEO John Foley with former Netflix and Spotify Technology SA (NYSE:SPOT) boss, Barry McCarthy. Foley is set to become the company’s executive chair.

By cutting about 20% of its corporate staff, Peloton is seeking to level matters off as it will also reduce the number of warehouses and seek third-party providers. This move alone could save the company up to $800 million every year.

In a press release, the company said: “This restructuring program is the result of diligent planning to address key areas of the business and realign our operations so that we can execute against our growth opportunity with efficiency and discipline.”

Potential takeover talks by the likes of Apple Inc (NASDAQ:AAPL) and Amazon Inc (NASDAQ:AMZN) sent the stock up by 20% on Monday trading.

“In Crisis Mode”

The restructuring plan also involves key changes in the company’s board of directors, with the inclusion of former Cisco Systems Inc (NASDAQ:CSCO) Angel Mendez, and ex Airbnb Inc (NASDAQ:ABNB) Jonathan Mildenhall.

“Peloton’s shares have plunged more than 80% from their high in January 2021. They’ve come under renewed pressure in recent weeks following a report that the company had stopped manufacturing new bikes and treadmills,” CNN reports.

Neil Saunders, managing director of GlobalData, said in a note to investors Tuesday that Peloton is “now a business in crisis mode.”

“Peloton has spent vast amounts of money on stores, factories, warehouses, and other facilities to service demand that is now unlikely to materialize. The first step of the new CEO, Barry McCarthy, should be to slash costs to right-size the business,” he added.

The company also said that the announcements will have no impact on on-camera instructors and content. Peloton will also reveal its earnings report for the last quarter on Tuesday.

Updated on

Sign up for ValueWalk’s free newsletter here.


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!