Peloton’s pandemic-era fairy tale is officially over

Engadget 02.05.2024 18:13 The pandemic sucked. Four years ago we were all stuck at home, and would continue being stuck at home for months on end. With all of us trapped in our houses, some products experienced a serious COVID-19 bump. Grocery delivery services absolutely blew up, as did Zoom and the perfectly-timed Animal Crossing: New Horizons. The same goes for Peloton and its line of exercise equipment. People were buying bikes and treadmills in droves, ballooning the company’s market cap from $6 billion to $50 billion. However, what goes up must come down, and Peloton’s market cap shrank to $10 billion by 2022 and now it rests at around $1 billion. The company’s pandemic-era success story has officially ended, and now it's focused on cutting costs. So that means layoffs. Peloton is laying off 15 percent of its workforce, according to TechCrunch, which amounts to 400 people. Aside from those massive cuts, the company is continuing to shut down brick-and-mortar showrooms. Barry McCarthy, the CEO, president and board director, is also stepping down after two years in the job. He was previously CFO at both Spotify and Netflix. Peloton says it's currently in the process of finding a successor, with current chairperson, Karen Boone, and director, Chris Bruzzo, to serve as interim CEOs. However, it is expanding international reach, announcing a more “targeted and efficient” marketing strategy overseas. Peloton hopes all of these steps combined will reduce annual expenses by $200 million by the end of its fiscal year 2025. The rise and fall of Peloton $PTON earnings will release today. Remember the times when many were convinced we would never return to the gym. #stocks #fallenangels pic.twitter.com/sfmmZTptB6— ArmChair Analyst ✝️

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