In November, the New York company had to scrap its sales forecast for the fiscal year running until mid-2022.
(Photo: AP)
new York The fitness equipment specialist Peloton wants to get out of its crisis with a change of boss and austerity measures. Peloton wants to cut around a fifth of the jobs with 2,800 jobs and stop building a factory, the Wall Street Journal reported on Tuesday, citing the company.
Co-founder John Foley also told the newspaper that he wanted to give up the post. Barry McCarthy, who used to be chief financial officer at streaming specialists Netflix and Spotify, should take on the top job. That could mean a greater focus on subscription revenue rather than hardware sales.
Peloton was one of the big winners early in the pandemic. Many customers of closed fitness studios brought the company’s comparatively expensive exercise bikes and treadmills home. But the boom died down with the easing of corona restrictions, while Peloton apparently overestimated demand. In November, the New York company had to slash its sales forecast for the fiscal year ending in mid-2022 – by up to a billion dollars.
Since the market value of Peloton collapsed from around 50 billion to 8 billion dollars due to the problems, according to media reports, Amazon and Nike, among others, were recently considering takeover bids. The change in leadership and the austerity measures should indicate that Peloton wants to secure its future as an independent company.
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The Peloton share, which recently jumped by around a fifth in the face of takeover speculation, fell by more than three percent in early US trading after the company’s plans became known.
More: Amazon apparently interested in Peloton takeover