Peloton layoff 2,800 people and replaces CEO... severance includes a free 12-month subscription...

[HipChick]

https://www.cnn.com/2022/02/08/business/peloton-layoffs-new-ceo/index.html

New York (CNN Business)Peloton is replacing embattled CEO John Foley and cutting about 20% of its workforce to help reinvigorate the flailing fitness company.

Barry McCarthy, the former chief financial officer of Spotify and Netflix, will become its CEO and president, effective Wednesday. Foley will become the company's executive chair, and wrote in a public note that the appointment is the "culmination of a months-long succession plan" he's been working on with the board. The Wall Street Journal first reported the news.
Peloton also announced it will lay off about 2,800 employees, including about 20% of its corporate positions. That was a move that Foley hinted at a few weeks ago. The company is also reducing the number of warehouses it owns and operates and expanding delivery agreements with third-party providers, that will help the company save $800 million in annual costs.

[spooky3]

1. They should have hired Mr. Mayhem. Nt

[twodogsbarking]

2. 2,801

[JT45242]

3. reminds me of Wendy's -- grow too quickly without a plan and then have to sell off a lot

Where's the beef -- was a success and a disaster for Wendy's. It greatly increased sales and the company started building stores all over the country without thinking about long term sustainability. Dave Thomas had to sell off (hence the founder of Wendy's in later commercials and not some actual title). Helped What-abiurger grow in Texas for example as they bought Wendy's buildings on the cheap.

Seems like PEloton did the same thing. They drank the people were desparate to work out in their own homes during the early pandemic and grew much too large much too fast in an unsustainable business model.

Not surprised. Greed will make people make lots of stupid decisions in the long run.

[Delphinus]

5. Thanks for this history.

My first question was how did things fail for Peloton so quickly?

[Happy Hoosier]

8. Not that complicated really....

Their business exploded as gyms were closed and they expanded rapidly.... and they (erroneously) assumed that they could maintain that growth rate.

I mean, I think most intelligent people would figure out that market saturation would be hit at a point, particularly when gyms open again, but their model anticipated continued rapid growth.

OOPS.

[PoliticAverse]

4. "severance includes a free 12-month subscription" - bad me, I laughed. n/t

[TheBlackAdder]

13. The kicker will be if the terminated have to pay income tax on it!

[Totally Tunsie]

6. Peloton does what it promises...

It made 2,800 people lighter...in their wallets.

[Patton French]

7. I hope they get through this...

I love mine!

[Emile]

9. My son has one too. The only question I have

is why do you have to pay a monthly price to pedal a bike you bought?

[lagomorph777]

10. I think the subscription is for somebody to yell at you to ride the bike.

I'm married though, so I can get that for free.

[Emile]

11. LOL +1

I watch TV when I pedal.

[PoliticAverse]

14. Will they be yelling at them to "Get a job you lazy unemployed slacker!!" n/t

[Patton French]

15. It's all about what motivates you to push yourself..

The different workout types and instructors can help push you beyond just peddling away while watching tv or reading a book, though I certainly do those things too. People also like the leaderboard so you can see where you rank and interact with others. Cheers!

[HipChick]

16. Are there Kill Switches on the bikes?

There are kill switches on their treadmills...they basically activated them when they got in trouble with treadmills, and owners could not even use them manually...

[obamanut2012]

12. They need to do what Ergatta did

It's a classic Water Rower (made in RI!) with an upgraded tablet and tech. You don;t have to have a $29/mo membership, but it is wayyyyyy cheaper than a rowing club membership, and I love the "gamification" of the training and rows, so it's worth it. Ergatta didn't expand too fast at least, and if they go under, I can still use the rower since it's a practical rower, unlike Hydroflow.