Embattled Peloton Will Lay Off Mount Vernon Workers

Mount Vernon NY

15 February, 2022

6:18 PM

Description

MOUNT VERNON, NY — All 75 employees at Mount Vernon's Peloton facility received notices on Feb. 8, that their jobs are ending at the exercise bike manufacturing company as its Westchester County location is permanently closing. The notice extends far beyond Mount Vernon workers to 2,800 employees nationwide being laid off as CEO John Foley is being removed during the corporate overhaul after a year of weak stocks, compared to 2020. According to the Washington Post, Peloton's share price dropped about 75 percent since a year ago. The fitness company says the corporate overhaul will help it "achieve at least $800 million of annual run-rate cost savings," according to a recent SEC filing. SEE ALSO: Peloton To Lay Off 112 LI Employees As Part Of Corporate Overhaul As part of the firm's restructuring plan, Peloton will permanently close its Mount Vernon site, eliminating all 75 jobs, according to a Work Adjustment and Retraining Notification (WARN) filing. The company will also permanently close its Port Washington, New York site on Harbor Road, cutting all 50 jobs there. In addition, the company plans to lay off 62 employees at its Farmingdale, New York facility. That plant will remain open and retain 31 workers. Peloton thrived at the start of the pandemic when gyms were shut down and people turned to alternative exercise by working out at home. During 2020, Peloton's stock price rose more than 600 percent. In 2021, as fitness enthusiasts returned en mass to the gyms, the demand for in-home fitness equipment dropped and so did the company's earnings and stock prices. Patch's Alessia Grunberger and Skyla Luckey contributed to this report.