Peloton is cutting another 500 jobs in a move that CEO Barry McCarthy said should position the struggling fitness equipment maker to return to growth.
The cuts, which amount to about 12% of Peloton’s workforce, mark a pivot point for the company, McCarthy told CNBC on Thursday. Peloton already has had multiple rounds of layoffs this year.
“The restructuring is done with today’s announcement,” he said. “Now we’re focused on growth.”
McCarthy said the company now has to prove its recent spate of strategy changes, including equipment rentals and partnerships with Amazon and Hilton, can help it grow.
Shares of Peloton were up 4% in morning trading. The stock is down about 76% so far this year.
McCarthy took over as CEO of Peloton earlier this year from co-founder John Foley, and has overseen drastic changes to its business model as the company struggled after a sales boom earlier in the Covid pandemic. A former Spotify and Netflix executive, he has pushed the company’s business further into subscriptions while broadening the availability of its products beyond Peloton’s direct-to-consumer roots.