Peloton slashing 500 more jobs as it races to return to growth

Peloton is eliminating 500 more positions in a move that, according to CEO Barry McCarthy, should enable the struggling manufacturer of fitness equipment to resume growth.

According to McCarthy, the layoffs, which affect around 12% of Peloton's personnel, signal a turning point for the business. This year, Peloton has already experienced several waves of layoffs.

With today's announcement, the restructuring is finished, according to McCarthy. "Growth is our current priority,"

McCarthy said the business must now demonstrate that its recent flurry of strategic adjustments, such as equipment rentals and alliances with Amazon and Hilton, can aid in its expansion.

Peloton stock fluctuated in premarket trading. About 76% of the stock has been lost so far this year.

This year, when Peloton faced sales challenges following a sales boom during the early days of the Covid epidemic, McCarthy oversaw significant modifications to the company's business model.

He has pushed the company's business farther into subscriptions while expanding the availability of its products beyond Peloton's direct-to-consumer beginnings. He was previously an executive at Spotify and Netflix.

The business said earlier this week that it would place its bicycles in each Hilton-branded hotel in the United States. Equipment will soon be sold on Amazon and in Dick's Sporting Goods stores, according to previously announced partnerships.