It's déjà vu for the luxury fitness company: Peloton is cutting about 400 more jobs, and its CEO is stepping down just two years after a major shakeup.Peloton hit the skids after its pandemic boom, struggling to figure out how to grow beyond sales of luxury fitness equipment.Peloton hit the skids after its pandemic boom, struggling to figure out how to grow beyond sales of luxury fitness equipment.in the CEO seat with Barry McCarthy, formerly of Netflix and Spotify.
The cost-cutting comes as Peloton tries to stop losing money and grow past its identity as a seller of luxury fitness equipment. Under McCarthy, with his expertise in subscriptions, Peloton has tried to focus more on corporate wellness, removed the free app membership option and struck deals with companies like Lululemon and Hyatt hotels.
McCarthy said Peloton was able to improve a key financial metric of free cash flow. But a subscription revolution did not happen. Peloton's stock value has plummeted more than 90% since the pandemic-era boom, when lockdowns had people splurging on Peloton's $2,000 stationary bikes plus a monthly fee for video-streamed classes. As people returned to their gyms and fitness studios, Peloton's equipment gathered dust.Peloton sales continued to wobble throughout. Now, the company is approaching a deadline to refinance more than $1 billion in debt.