A massive fitness company is now laying off 400 employees globally as it faces both declining sales and members.
Under new leadership, Peloton announced plans to lay off 15% of its global workforce, affecting roughly 400 employees, as part of a restructuring effort aimed at “align[ing] the company’s cost structure with the current size of its business,” according to a separate press release.
Peloton CEO Barry McCarthy is stepping down as the company’s chief executive, president and board director.
He will act as a strategic adviser to the company until the end of the year, according to a company press release.
The fitness company has appointed Karen Boone, Peloton’s current chairperson, and Chris Bruzzo, a company director, to serve as interim co-CEOs as it begins its search for McCarthy’s successor.
Peloton also named Jay Hoag, company director, as its next chairperson.
The cost-cutting efforts are intended to reduce expenses by more than $200 million by the end of 2025 fiscal year, with a significant portion of those reductions taking place immediately, according to the company.
In addition to its new layoffs, Peloton will continue to reduce its showroom footprint and reevaluate its international strategy to be more “targeted and efficient,” noting that it will not exit any existing international markets.
About $100 million in those reductions are related to payroll, while the other half are related to things like lower spending on brand and creative marketing, reducing its retail footprint, lower contractor spending and reduced spending on IT and software, CFO Liz Coddington told analysts Thursday.
“While these decisions are always difficult, they have been made carefully to ensure that we can continue to provide the best fitness experience for our members and maintain positive free cash flow over the long term,” the company said in its shareholder letter.
“We will continue to invest in innovation across our software, hardware and content portfolio and in improvements to our member support experience to meet the needs of current and future members.”
For more news and updates like this, opt-in for push notifications.
Also Read: A Massive Grocery Chain With 400 Stores Is Now Closing
Other Economy News Today
A popular Italian restaurant now announces an unexpected closure after nine years in business, according to an email sent to customers.
Italian Eatery, located in south Minneapolis, Minnesota, told its long-time customers that it planned to shut its doors.
The beloved restaurant, also known as ie, also plans to close its sister restaurant un dito, known for its Sicilian seaside street food, per The US Sun.
They have not announced a closing date but are expected to close between late May and mid-June, according to Bring Me The News.
“As we prepare to close our doors at ie and un dito, we’d like to extend a heartfelt invitation for you to join us for our final months of service,” an email to customers from Carrara $ Co. read.
“Gather with us at the table and let us reminisce over the incredible memories we’ve created together and cherish the moments shared over the past nine years.”
Italian Eatery has been a popular spot since its opening in 2016 and is known for its full-service drinks and dining near Lake Nokomis.
Un dito is a 400-square-foot space that specializes in sips and snacks or afternoon gatherings like you would see in Italy, according to its website.
The restaurant’s “Last Supper” reservations will be released every week and shared in weekly newsletters, according to its website.
“As always, we will continue to reserve walk-in tables at both ie + un dito for our beloved neighborhood,” the announcement read, according to the outlet.
Carrara & Co. also owns due, a focacceria and Italian market in St. Paul, Minnesota that the company calls “Italian Eatery’s spawn, aka quirky little brother,” according to its website.
Despite the Minneapolis closures, due will remain open.
“I’m pleased to inform you that all other Carrara & Co operations remain unaffected, including Due Focacceria, and we are even expanding our services,” according to a statement, reported by NBC affiliate KARE.
For more news and updates like this, opt-in for push notifications.
Also Read: A Massive Grocery Brand Now Files For Chapter 11 Bankruptcy
Market News Published Daily 📰
Don’t forget to opt-in for push notifications so you don’t miss a single article!
Also, thank you to all of our blog sponsors.
This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.
Scroll below to view my stock purchases this month!
You can also follow me on X (Twitter), Instagram, Facebook, or LinkedIn for daily news and updates on your favorite stories.
Frank Nez’s Stock Portfolio
Wondering which stocks Frank Nez is holding? Which stocks is Frank Nez buying?
Frank Nez is now sharing his exclusive and personal stock portfolio with readers, only on the Patreon.
11/16/2023 – Today I invested $1,000 in two different stocks for a brand new stock dividend portfolio I am creating for 2024.
Recommended For You ✨
About The Author
Leave your thoughts below.
For more news and updates like this, opt-in for push notifications.