Peloton To Lay Off 112 LI Employees As Part Of Corporate Overhaul

Port Washington NY

15 February, 2022

4:20 PM

Description

PORT WASHINGTON, NY — Peloton, the high-end exercise bicycle and treadmill company that thrived during the pandemic, will be laying off 112 Long Island employees. As part of the brand's restructuring plan, Peloton will permanently close its Port Washington site on Harbor Road on May 9, cutting all 50 jobs, according to a Work Adjustment and Retraining Notification (WARN) filing. The company also plans to lay off 62 employees at its Farmingdale facility on Sea Lane the same day. That plant will remain open and retain 31 workers. The changes come as Peloton announces it is replacing embattled CEO John Foley and cutting 2,800 jobs, including 20 percent of its corporate positions. The beleaguered fitness company says the corporate overhaul will help it "achieve at least $800 million of annual run-rate cost savings," according to an SEC filing. Peloton exploded in popularity during the early stages of the COVID-19 pandemic, when Americans couldn't hit the gym and had to resort to exercising at home. At the time, sales for its gym equipment soared, as did subscriptions for its online classes, according to The Associated Press. But those sales have stalled since gyms reopened and vaccines rolled out. The company expects subscriptions to drop 6 percent and losses in 2022 of between $425 million and $475 million, the news outlet reported. That's much more than the $325 million in losses Peloton initially expected.