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Peloton vows to lay off workers, close stores due to financial problems

This content was published on Aug 12 2022-18:52

New York, August 12 (EFE). – American sports equipment company Peloton, one of the stars of Wall Street at the beginning of the Covid-19 epidemic, said Friday that it will conduct layoffs and close part of its stores to try to solve your financial problems.

Peloton, which has plunged sharply in the stock market in recent months, told its employees in an internal memo that it needed to make changes to achieve liquidity, starting with “sizing up” its inventory and turning many of its fixed costs into variables, CNBC compiles..

This medium estimates the layoffs at 780, which will be part of a $800 million restructuring plan that includes cutting 2,800 jobs, 20% of the workforce, announced at the beginning of the year by the company’s new CEO, Barry McCarty.

In terms of stores, it said it would make a “significant and decisive reduction” of its presence in North American retail space and would later report on how many of its 86 locations it would close.

The company, which sells stationary bikes and treadmills along with subscriptions to exercise classes displayed on a screen built into the devices, saw its business grow at the start of the pandemic, as gyms in the United States closed, and were forced to close.

At the time, many Americans who had stopped spending elsewhere as a result of the shutdowns decided to pay the nearly $2,000 that Peloton’s basic products cost.

However, with activity returning to normal and demand for it waning, it has gone from $50 billion of capitalization at its peak to about $4 billion today, with an 88% loss in market capitalization last year. EFE

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