According to these latest reports, the fitness company intends to reduce its workforce by an additional 12%. That would see it cutting 500 jobs and leaving the company with around 3,800 employees.
Cutting jobs is part of Peloton’s efforts to reduce expenses and focus more on generating revenue. The company already made a similar move earlier this year when it fired 2,800 employees. It also cut more than 500 jobs in July and another 800 in August.
Can Peloton Survive the Recession?
Things haven’t been looking good for PTON stock ever since the pandemic began easing. Interest in the company started to wane as home workout equipment lost its lockdown allure. This has Peloton pushing for a major turnaround.
Barry McCarthy, CEO of Peloton, is pushing for that change over the next six months. If the company can’t make it happen in that time, he’s unsure if it can remain as a standalone business, Reuters notes.
PTON stock is seeing heavy trading today following the job cuts news. This has some 16 million shares on the move as of this writing. That’s already above the daily average trading volume of 15 million shares.
PTON stock is up 3.7% as of Thursday morning but down 75% since the start of the year.
Investors seeking out more recent stock market news will want to stick around!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.