Connected fitness specialist, Peloton has confirmed co-founder John Foley is to leave the company as part of a wide-ranging restructure that will see 2,800 job cuts as it adapts to lower demand in a post-lockdown world.
Peloton manufactures high-end exercise bikes and treadmills supported by a highly-integrated subscription service that includes social features and live instruction classes.
Interest in its products increased significantly during the pandemic, with gyms closed and fitness classes suspended.
However, the easing of lockdown restrictions has seen orders decline and Peloton’s market value fall from $50 billion to around $8 billion over the past 12 months. This has made the company an attractive target to suitors, with Amazon, Apple and Nike all linked with a takeover, and intensified investor discontent.
In a bid to cut costs by up to $800 million and lay a foundation for long-term, sustainable growth, Peloton says it will reduce its manufacturing footprint, outsource more of its delivery and distribution, and reduce its workforce. Of the 2,800 jobs at risk, around a fifth will be at a corporate level.
Foley will remain as executive chair and will be replaced by former Spotify chief financial officer, Barry McCarthy.
