Slumping Peloton replaces CEO, cuts 2,800 jobs
NYSE - LSE
Slumping Peloton replaces CEO, cuts 2,800 jobs
Home-exercise company Peloton announced Tuesday it would eliminate 2,800 jobs in a cost-cutting drive as founder John Foley stepped down as CEO, though he will stay on as chairman.
The company, which has seen growth slow with the end of widespread Covid-19 lockdowns, said it will trim its planned 2022 capital expenditures by about $150 million.
Annual costs are expected to fall "at least" $800 million as the company cuts corporate positions by 20 percent, Peloton said.
Foley will be replaced by Barry McCarthy, former chief financial officer at Spotify and Netflix.
Shares of the company, known for its stationary bicycle and connected training videos, have fallen sharply over the last year with the evolution of the Covid-19 pandemic.
But the stock rallied Monday following reports that Amazon was among the companies exploring a takeover of Peloton.
Shares fell 2.6 percent to $28.98 in pre-market trading.
D.R.Megahan--NG
