Salem Radio Network News Saturday, February 4, 2023

Business

Peloton to cut about 12% of workforce in turnaround attempt -WSJ

(Reuters) -Peloton Interactive is planning to cut about 12% of its workforce in its fourth round of layoffs so far this year, the Wall Street Journal reported on Thursday, citing a company statement.

The 500 job cuts were announced to staff and the reductions will leave Peloton with roughly 3,800 employees globally, the report said.

Chief Executive Barry McCarthy, who took over in February, will give the unprofitable company another six months or so to significantly turn itself around and, if that fails, Peloton likely is not viable as a standalone company, the report said.

Peloton did not immediately respond to a request for comment from Reuters.

The latest cut mark Peloton’s final significant move to reduce its operating footprint and that executives would now focus on increasing revenue, WSJ reported, citing the CEO.

Earlier this year, the company said it would cut about 2,800 jobs to revitalize sagging sales and win back investor confidence.

Peloton, which has been involved in a series of price cuts and rejigs over the year, cut about 570 jobs at its Tonic Fitness Technology unit in July and 800 jobs in August.

Shares of the company reversed course to gain 1.7% in premarket trading.

(Reporting by Priyamvada C in Bengaluru; Editing by Anil D’Silva)

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