The struggling fitness company Peloton, after advertising widely during the pandemic, has disclosed plans to cut 2,800 jobs including a bloc at its North Texas office in Plano which was the company's first support center outside its headquarters of New York City.
Last year, the Plano complex was listed as one of the Dallas Morning News' top 100 places to work in North Texas.
“There are folks freaking out right now wondering if they are on the [layoff] list,” a Peloton source told The New York Post. “Everything has been so hush-hush.”
Peloton instructors were not included in the layoffs, and the company said the layoffs "will not impact the Member experience."
It was also announced that CEO John Foley will be stepping down as CEO, being replaced by former Netflix and Spotify CFO Barry McCarthy, but will stay with the company as an executive chairman of the board.
Peloton's stock rose more than 25% because of the news, growing to $37.27 per share. The company's 52-week low was $22.81 per share, and the 52-week high was $155.22 in January of 2021.
Corporate employees were notified of the layoffs in an email that was sent at 5 a.m. on Tuesday, as about 20% of the corporate workforce was fired.
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