800 jobs axed

Lockdown winner Peloton to shut stores

Peloton in Edinburgh’s St James Quarter (pic: Terry Murden)

Peloton Interactive, one of the beneficiaries of the work from home phenomenon, is cutting a further 800 jobs, raising prices and closing some stores as it attempts to reverse its declining fortunes.

The US firm’s plans, disclosed in a memo to employees, includes closing many of its retail showrooms, raising the possibility of its Edinburgh outlet becoming the first closure in the St James Quarter.

The company will shed 784 employees across its distribution and customer service teams, Bloomberg said, and will gradually close most of its retail showrooms. Peloton does not expect to close its retail locations this year, but acknowledged the timing is “uncertain” as it negotiates store leases.

Peloton axed roughly 3,000 jobs in February, as new chief executive Barry McCarthy pledged a sweeping turnaround. It scrapped plans for a US factory and last month said it would no longer make its own equipment.

After seeing sharp growth during the lockdown, when gyms were forced to close under Covid restrictions, the company has now seen sales in decline and losses mount. The company’s stock price has plunged nearly 90% over the past 12 months.

One of Peloton’s showrooms

“We have to make our revenues stop shrinking and start growing again,” Mr McCarthy said in the memo.

Investors were encouraged by the statement and sent the shares up by nearly 10% to $13.10 in New York trading.

Ironically, given how it benefited from people working from home, Peloton is insisting on a return to the office at least three days a week from 6 September.

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