• 1440 Daily Digest

Peloton Layoffs, Again

Connected fitness company Peloton is cutting roughly 500 jobs, or about 12% of its workforce, in its fourth round of layoffs this year. The reduction brings the headcount down to roughly 3,800, less than half its peak of 8,600 last year. CEO Barry McCarthy, who took over in February, claims the move should position the company to return to growth after reporting a nearly $1.3B loss last fiscal quarter, its sixth losing quarter in a row.

The at-home exercise company joins other pandemic-era risers pursuing staff reductions this year, including Wayfair, which laid off 5% of its staff in August, and DocuSign, which laid off 9% of its staff last week. Companies have blamed overstaffing during the pandemic, rising labor costs, slow business growth, and the possibility of a recession for the layoffs.

Shares of Peloton have lost three-quarters of their value since the start of this year, and are down from an all-time high of nearly $170 in January 2021.

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