About 12 per cent of Peloton’s workforce may be asked to leave. The connected-fitness company is about to cut about 500 jobs in a fourth round of layoffs.
While jobs will be cut across the organisation, the marketing division will be most affected. The Company that manufactures fitness equipment and had witnessed a boom in sales during the pandemic, but is now restructuring after which it will focus on growth and cost cuts.
The restructuring and associated changes will enable Peloton to achieve its goal of break-even cash flow at the end of the financial year.
While the workforce was about 8,600 strong in June last year, it will be reduced to about 3,800 after the latest round of job cuts. It has cut hundreds of jobs at its retail outlets too because many stores have been shut down.
The Company has said that these layoffs were necessary to save the firm.
Recently, Peloton entered into a partnership with Hilton. As a result, Peloton Bikes will now be included in almost all the Hilton brand of hotels in the US.
In India, similar layoffs had happened at Cure.fit the fitness brand, amidst the pandemic in 2020. Many employees including trainers, centre managers of Cult.fit (Cure.fit’s fitness centres brand) as well as many cafe managers and staff of Eat.fit (its healthy food quick service outlets), were asked to leave.
However, the Company’s Cult.live, its digital fitness platform had done very well during the lockdown.