Peloton issued a statement denying reports that the company had a timeline to complete a turnaround or it would sell the business.
The Wall Street Journal reported Thursday morning that Barry McCarthy, who took over as CEO in February 2022, had given the unprofitable company six months to turn itself around, and, if that failed, Peloton would likely not be viable as a standalone company.
WSJ further noted that Peloton planned to cut another 500 jobs as part of its turnaround efforts, the company’s fourth round of layoffs in 2022.
In a statement Thursday evening, Peloton confirmed the elimination of approximately 500 employees as part of the company’s final phase of its “transformation journey.”
Peloton said the restructuring of Peloton’s business and capital structure to assure its long-term health is complete, and management’s focus is now on growth.
McCarthy, in the statement, reinforced his belief in the “lasting resilience” of the Peloton business and thanked departing employees members for their contributions to the company.
McCarthy said, “I joined Peloton for the comeback story, not to sell the business. And, today, the business is fundamentally more sound than ever and on the right path, so, to be clear, there is no time clock nipping at our heels. If my comments to the WSJ suggested otherwise, then I misspoke, as that is simply not true.”
“Restructuring a business requires difficult decisions that affect people’s lives. I’m grateful for the many contributions of those who have been impacted. The changes we have made, combined with the performance of the business, are moving us closer to our fiscal year-end goal of break-even cash flow with a renewed focus on growth.
“We are in the business of driving performance, and the business is indeed performing. By any measure, we have made remarkable progress in record time.”
Photo courtesy Pelton/Protocol
