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Peloton (PTON) is slashing an additional 500 jobs in the latest in a series of layoffs aimed at turning around the struggling fitness equipment company, employees were told Thursday.
The cuts will amount to around 12% of Peloton’s workforce.
The company will now be left with around 3,825 employees after its fourth round of layoffs this year. The company employed more than 6,700 workers in June 2021.
“The restructuring is done with today’s announcement,” Chief Executive Barry McCarthy told CNBC on Thursday. “Now we’re focused on growth.”
McCarthy replaced Peloton co-founder John Foley in February to turn around a company struggling after the pandemic.
McCarthy struck partnership deals with Amazon and Hilton and is expanding into equipment rentals.
Peloton in July outsourced its manufacturing of bicycles and treadmills to Taiwan.
Peloton’s stationary bikes and fitness classes were popular during the pandemic when gyms were closed and people remained indoors. Peloton is now experiencing falling demand and persistent supply chain issues now that most pandemic-related restrictions have been lifted.
The company reported a $1.2 billion loss in the most recent quarter, its sixth losing quarter in a row.
Peloton shares have lost three-quarters of their value this year.
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