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Peloton lays off 2,000 employees due to brand growth

Peloton, a major sports equipment giant, has laid off about 2,800 corporate employees as part of its attempt to overcome the difficulties of growth that washed over the manufacturer shortly after the rapid influx of fame in the early days of the pandemic. Naturally, many of these employees are understandably very frustrated and angry, and, according to the authoritative publication CNBC, some of them even disrupted the first general meeting of the company, intended to introduce the new CEO.

Also of note is that in addition to laying off 20 percent of its workforce, Peloton has also replaced its top executive. But yes, it is important to note that the layoffs at the firm did not affect the instructors. Anyway, John Foley, who is also a co-founder of the company, recently stepped down and was replaced by Barry McCarthy, former COO of Spotify. The same publication reports that both former and current employees of the company, immediately after the announcement of this news, began to leave various angry comments in the chat section of the meeting, where the new CEO was introduced.

Peloton Interactive Inc. stationary bicycles sit on display at the company’s showroom on Madison Avenue in New York, US, on Wednesday, Dec. 18, 2019. The stakes are high for Peloton as it heads into its first holiday season as a publicly traded company. Peloton projected sales of $410 million to $420 million for the quarter ending Dec. 31, up about 60% from the same quarter a year earlier. Photographer: Jeenah Moon/Bloomberg via Getty Images

Moreover, one of them even called all those present “terribly deaf.” Another former employee wrote that he was forced to sell all his clothing and sports equipment from Peloton in order to now be able to pay his bills. “The company screwed up by allowing people who got fired into this chat,” another person said. But if you are not in the know, you should immediately clarify that Peloton was extremely popular just over a year ago, when due to the global pandemic, people could not go to gyms.

As a result of this, the giant even managed to reach a market value of $50 billion in January 2021. It’s now worth around $8 billion, and bigger companies like Amazon and Nike are reportedly very active in acquiring the fitness equipment maker. While Peloton hasn’t explicitly said it plans to lay off people, John Foley has previously mentioned that the company “needs to evaluate its organizational structure and the size of its team” in order to make the business more agile. This was part of his response to an older CNBC report that claimed the company was ceasing production of bikes and protectors. However, John Foley denied the rumor at the time.

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