NEW YORK — For the fourth time this year, Peloton is cutting its workforce by 12%.
According to The Wall Street Journal, Peloton CEO Barry McCarthy said Thursday that the company plans to cut roughly 500 jobs after reporting six straight quarterly losses.
Peloton is cutting 500 jobs, roughly 12% of its workforce. The company's CEO says it has six months to prove it can survive on its own or it won't be viable. https://t.co/psovNQfiyt
— The Wall Street Journal (@WSJ) October 8, 2022
The company will be left with around 3,800 employees following the layoffs. According to the New York Times, the company employed over 6,700 people in June 2021 but has been forced to cut jobs as the pandemic-related lockdowns were lifted.
According to The Associated Press, Peloton said that it had completed most of the restructuring plan begun in February.
“The changes we have made, combined with the performance of the business, are moving us closer to our fiscal year-end goal of break-even cash flow, with a renewed focus on growth,” McCarthy said.
The company is working to return to profitability. The AP reported that Peloton lost $1.24 billion in its fourth quarter, and revenue dropped from $936.9 million to $678.7 million.
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