Peloton announced it will be cutting 500 jobs, around 12% of its workforce, in a move to return to growth. This follows several previous rounds of layoffs in 2022. Barry McCarthy, CEO of Peloton, stated “The restructuring is done with today’s announcement… Now we’re focused on growth.”
The firm has already introduced new strategies aimed at growth, including rentals and partnerships with Amazon and Hilton. Its shares rose from $7.48 a share on Monday to $8.66 on Thursday in response to the new strategy, although Peloton stocks have fallen by around 76% since the beginning of the year.
Peloton also announced plans to roll out its bikes across all 5,400 Hilton-branded hotels in the U.S. in a new partnership between the two companies. At least one Peloton bike will appear in each Hilton hotel fitness centre, including in Hampton Inn, Embassy Suites, Doubletree, and other Hilton brands. In addition, Hilton Honours members will be given a 90-day free trial of the Peloton app.
The firm is planning to equip all Hilton hotels with at least one bike by the end of the year. Peloton already has a significant presence in U.S. hotels, with the company stating that guests have completed 1.6 million Peloton rides this year to date. Betsy Webb, the global vice president of Peloton’s commercial branch, said “My first experience with Peloton was during a hotel stay while on vacation, and I was immediately hooked.” She explained the firm’s approach to its partnerships, “We love brands that prioritize their customers’ wellness and could not be more excited to bring Peloton to Hilton guests nationwide wherever they are on their fitness journey.”
