Peloton CEO Barry McCarthy
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Peloton is slashing hundreds more jobs in a desperate measure to cut costs, The Wall Street Journal reported Thursday.
The connected-fitness giant said it plans to cut around 500 jobs, or roughly 12% of its remaining workforce, per the report. CEO Barry McCarthy told The Journal that the cuts are company-wide but that the marketing team would be most affected.
This is the company’s fourth round of layoffs this year. Peloton did not immediately respond to Insider’s request for confirmation of the layoffs.
McCarthy told The Journal that he was giving the company around six months to turn itself around.
“There comes a point in time when we’ve either been successful or we have not,” he said.
With the new layoffs, Peloton will have around 3,800 staff left, which is less than half the size of its workforce at its peak last year, The Journal reported. Peloton also told The Journal that it has eliminated about 600 more jobs since June than previously disclosed, including through retails store closings.
“I know many of you will feel angry, frustrated, and emotionally drained by today’s news, but please know this is a necessary step if we are going to save Peloton, and we are,” McCarthy said in a staff memo viewed by The Journal.
McCarthy told The Journal that the company had reduced costs by slashing jobs, outsourcing all manufacturing, and reducing unsold inventory. He said that the new layoffs would be Peloton’s last bit cost-cutting measure and that the focus would from now on be on increasing revenues.