Peloton Lays off Employees for the Fourth Time This Year

The home fitness company plans to lay off 500 employees, or 12 percent of its workforce as CEO Barry McCarthy seeks to turn around the business.

Close-up of a black Peloton bike.
Peloton layoffs continue.
Photo by Joe Raedle/Getty Images

Home fitness company Peloton plans to lay off 500 employees, or 12 percent of its workforce, the Wall Street Journal reported today (Oct. 6). It’s the fourth time Peloton has cut jobs this year as CEO Barry McCarthy seeks to turn around the business.

McCarthy, who took over as CEO in February, told the Journal most of the cuts would affect marketing employees. Peloton cut 800 jobs in August as it sought to outsource distribution and customer service roles to third-party logistics providers. The company’s head count is about half of what it was at its peak last year.

“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 told employees in an internal memo cited by the Journal.

Though Peloton’s revenue surged during the first year of the pandemic, the company has struggled to sell fitness equipment and subscriptions as consumers have lost interest in at-home workouts. Peloton reported a $1.2 billion loss for the quarter that ended in June, and $415 million of that loss was related to restructuring changes. Even as Peloton has signed partnerships with Dick’s Sporting Goods and Hilton Hotels, its stock has continued to fall and is down 76 percent since the start of the year. Peloton Lays off Employees for the Fourth Time This Year