- Peloton announced this week that it’s laying off 2,800 people — and as part of its luxurious severance package, the fitness company is offering its North American employees a complimentary membership for one whole year.
- Along with offering his sincere apologies, CEO John Foley has offered to step down from his current role and function as executive chairman instead. Barry McCarthy, a former exec from Netflix and Spotify, is slated to replace him as CEO.
- Foley’s wife, Jill — who was vice president of apparel at Peloton — is also resigning along with the current president, William Lynch. The company has announced it will be making additional changes as well, like “creating more space for debate.”
- According to Securities and Exchange Commission filings, executives and insiders sold nearly $500 million in Peloton stock right before it crashed last November. See Economic Left’s story about that shocking coincidence linked here.
Maxwell Strachan from VICE writes:
“The company is trying to right the ship following a string of controversies and corporate missteps that led to production stoppages, price increases, and a plunging share price.
Peloton, the fitness and technology company, announced Tuesday that it was laying off 2,800 people as it attempts to right the ship following a string of controversies and corporate missteps that led to production stoppages, price increases, and a plunging share price.
As part of the severance package, the company said, it would offer its North American employees compensation (based on tenure and job title); health care (for an unspecified period of time); and, most notably, a complimentary Peloton membership for 12 months.
The layoffs come as the company rejiggers its leadership. CEO John Foley will step down from the role and become executive chairman. He will be replaced by Barry McCarthy, a former executive at companies like Spotify and Netflix. Peloton’s president, William Lynch, is stepping down from his role, as is Foley’s wife, Jill, who had been vice president of apparel…”
See full story here.