Fitness company, Peloton is going through a rather dull phase at the moment and is left with no other choice but to fire some of its staff in response to a sharp turndown in the company business. Almost 2800 employees are to be fired from the company which amounts to roughly 20 percent of its corporate staff. However, the company has a plan in hand to ease the fall for these employees. A curious benefit comes with the severance plan for these 2800 people who are to be left with no jobs. They will get a membership to Peloton. After all, “every cloud has a silver lining.”
The What and Why
Peloton’s business has been going downhill for the past few months. The downturn in business has had a major impact on the company which is cutting back on its staff. This dull phase comes after a major business boom during the time of the pandemic when the demand for home fitness products was rather high since more and more people became focused on their health and physique during the lockdowns, in addition to the closure of gyms which was a major roadblock to fitness goals. This was the perfect ground for a company like Peloton to grow, and grow it did. However now, the situation has changed. With the increase in the availability of vaccines and with covid taking a backstage, the world is opening up, so are gyms. In other words, it was a major curveball for Peloton. Although it has no option but to fire its employees, the company is doing its best to make sure that the fall isn’t too hard which is why the employees will be getting a free Peloton subscription extending up to 12 months in addition to several other benefits.
“The Peloton monthly membership will be complimentary for impacted team members for an additional twelve months.” In addition to the free subscription, the affected employees will also get “meaningful cash severance allotment.”
The company had also made an announcement regarding CEO John Foley who will be stepping down as the chief executive of the company. He will be replaced by Barry McCarthy, the former CFO of Netflix and Spotify. The company has also put a hold on its earlier plans to build a new factory in North America. With the market value dropping from a whopping $50 billion in 2021 to an alarming $9.8 billion in 2022, it has been a rough ride for the company.
