NEW YORK (1010 WINS) — Peloton is giving its 2,800 laid-off employees a parting gift as it tries to recover from its most recent downturn.
CEO John Foley told employees in an early Tuesday morning email that the let-go workers will receive complementary fitness classes for 12 months as part of a severance package.
"We are equipping every team member leaving Peloton with helpful tools to make them as comfortable as possible as they explore their career path post-Peloton," he wrote in the memo.
The average $40-a-month Peloton membership will come along with a typical severance package that includes extended payments, healthcare coverage and help finding new work for its departing North American workers.
The company, known for its at-home workouts and popular stationary bikes, has reportedly struggled, cutting its financial outlet for the full year and admitting a loss of nearly $500,000.
Peloton also announced last month that it would pause production of bikes and treadmills as demand fell.
"I recently shared that we have been in the process of re-evaluating our costs across the entire organization to ensure we are appropriately structured for the post-COVID landscape," said Foley, who will serve as executive chairman once former Netflix and Spotify chief financial officer Barry McCarthy becomes CEO.
A Peloton source told The New York Post on Tuesday that employees were "freaking out wondering if they [were] on the [layoff] list."
"Everything has been so hush-hush," they continued.
