Peloton, it seems, is not out of the woods yet. The once-mighty connected fitness company has had a steep uphill battle to turn its fortunes. This morning, the company confirmed with: The Wall Street Journal that it plans to cut another 500 jobs, led by CEO Barry McCarthy. The executive, who took over from co-founder John Foley early this year, has made streamlining a top priority.
Around the time of the transition, the company cut 2,800 jobs. Since then, it has gone through a number of different evasions, including outsourcing the production of its equipment after scrapping plans to ramp up production from the first batch and adding Amazon to its sales channel – both were important steps for a company. that has long been self-sufficiency a priority.
After suspending production of its hardware, the company recently announced plans to release its first rowing machine in December. In September, Foley and co-founder, Chief Legal Officer Hisao Kushi, resigned from the company.
Recognizing Peloton’s ongoing struggle, McCarthy set a six-month timeline for a major turnaround. If that fails, it seems likely that it will actively approach potential buyers. Amazon was one of the rumors that would consider a takeover after Foley’s resignation.
We’ve asked Peloton for comment.