Peloton is firing over 2,800 employees — about 20% of its corporate staff.- Part of the severance package for those thousands of fired employees is a one-year Peloton membership.
Peloton is firing over 2,800 employees — 20% of its corporate workforce — due to an ongoing downturn in the company's business.
As part of the severance plan for the over 2,800 laid off employees, Pelton is offering a curious benefit: A membership to Peloton.
"The Peloton monthly membership will be complimentary for impacted team members for an additional 12 months," Peloton $4. That's in addition to a "meaningful cash severance allotment" that's determined "based on job level and tenure" with the fitness company, alongside several other benefits.
Peloton announced CEO John Foley is $4, with former Spotify and Netflix CFO Barry McCarthy stepping into the role. The company is also $4 in North America.
In the last few months, Peloton has seen a major downturn after home fitness products spiked in popularity during the height of the coronavirus pandemic.
With gyms re-opening as vaccine rates increased, Peloton's business took a huge hit: The company's market value has dropped from $50 billion last year to $9.8 billion as of early February 2022.
On the company's second-quarter earnings call on Tuesday morning, Peloton execs said they expect further sales decreases in coming quarters as the at-home fitness market continues to contract to pre-pandemic levels.
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