“I know many of you will feel angry, frustrated, and emotionally drained by today’s news, but please know this is a necessary step if we are going to save Peloton, and we are,” McCarthy added.
Peloton was one of the biggest beneficiaries of COVID-19 lockdowns as its connected exercise bikes and treadmills became all the rage among stuck-at-home fitness enthusiasts. However, the momentum soon petered out with the reopening of gyms and fitness centers, pushing the company into a string of quarterly losses and forcing it to take drastic measures to cut costs.While the layoffs might help cut losses in the quarters ahead, on their own they are unlikely to transform the fortunes of Peloton, Saunders said.
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