Peloton, an indoor training platform, announced a 15% reduction in its workforce, eliminating a total of approximately 400 positions.

The company's stock price has fallen from a high of over $160 in December 2020 to an average of $3 in recent months, and its stock market value has fallen from over $50 billion to $1.1 billion. The stock fell from $3.60 to $2.80 in a matter of hours following Thursday morning's news, but has since rebounded and is at $3.13 today. The company has not made a profit since the height of the pandemic in December 2020.

McCarthy, who joined Peloton in February 2022, claimed that the job cuts were necessary to align spending with earnings and were part of a restructuring aimed at reducing annual spending by $200 million.According to The Verge, since 2022, Peloton has made five job reductions, down to about 3,000 employees from a peak of 8,600.

As we reported in February, Peloton reported a net loss of about $195 million on revenues of $744 million in the fourth quarter of 2023, at the time McCarthy pointed to the poor quality of service provided by its member support division and the University of Michigan co-branded bikes as He pointed to the failure of various initiatives, such as the University of Michigan's co-branded bikes.

Despite this, with nearly 3 million connected fitness subscribers and over 700,000 Peloton App users, the company reported a net loss of $167 million for the quarter ending March 31, 2024, a slight decrease from Q4 2023.

Peloton is best known for its connected exercise bikes, which were a huge hit during the Covid 19 craze because they offered an at-home alternative to the then-shuttered gyms Peloton also offers an app, which allows users to use their own equipment to online exercises on their own equipment. We reviewed the Peloton Bike+ in 2022, and despite some concerns about the pricing model, the software impressed us.

The brand also sells treadmills, which were the subject of a recall in 2021 after the death of a 6-year-old child. It also sells rowing machines in the US.

Other issues include a notice to stop riding issued last May, which resulted in a voluntary recall of about 2.2 million peloton bikes due to a defect that could cause the seat post to break.