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Peloton to cut 2,800 roles as part of restructure

Tom Shearsmith
09 February 2022

Peloton has confirmed a series of steps it is taking to position the business for long-term growth, including a restructure which will result in the loss of 2,800 roles.

Once Peloton's actions are fully implemented, the company expects to achieve at least $800 million of annual run-rate cost savings through operating expense efficiencies and significant margin improvement in its Connected Fitness category.

The company noted that the redundancies will happen across almost all areas of business operations, which will streamline reporting structures and “create clearer lines of accountability”.

Corporate positions will be reduced by approximately 20% and owned/operated warehouses and delivery teams will also be reduced. The company will expand its commercial agreements with third party logistics providers.

The company is also winding down the development of its Peloton Output Park manufacturing plan, resulting in $60 million in restructuring capital expenditures. The restructuring program itself is expected to result in around $130m in severance cash charges and other restructuring activities.

John Foley, Co-Founder of Peloton and newly appointed Executive Chair, commented: "With today's announcements, we are taking action to ensure Peloton capitalises on the large, long-term Connected Fitness opportunity. This restructuring program is the result of diligent planning to address key areas of the business and realign our operations so that we can execute against our growth opportunity with efficiency and discipline.

"These decisions, particularly those related to our impacted Peloton team members, were not taken lightly. We greatly value the contributions of our talented colleagues and are committed to supporting impacted team members in their transitions. We thank our global team members for their focus and dedication through this process."

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