Exercise company Peloton is conducting its fourth round of layoffs this year, with about 500 jobs being eliminated as the company attempts to cut costs.
In an memo shared with CNN Business, CEO Barry McCarthy told employees that “this is a necessary step if we are going to save Peloton, and we are.”
He also said that Peloton’s retail operations had lost more than $100 million in 2021.
The layoffs amount to 12% of the company’s staff, which will leave it with 4,000 employees, which is less than half the number of employees it had its peak in 2021. The company announced in August that it was closing a substantial amount of its 86 retail stores in North America.
This last August the company reported another bad quarter; it lost more than $1.2 billion, and revenues sank 30% compared to the year prior.
These layoffs reflect a struggling economy as well as a nonexistent labor shortage, and the company isn’t alone in having to conduct layoffs to save itself.
