Fitness equipment manufacturer Peloton has announced that it is firing over 2,800 employees globally as the business is taking a great hit amid the COVID-19 pandemic. In a press note, Peloton co-founder John Foley said that the company is making changes at different levels, including its leadership team. Additionally, as a part of its severance, fired employees will receive Peloton monthly membership for an additional 12 months. The subscription available in the US, the UK, Canada, and select other countries gives access to a “library of classes" to ensure users stay fit even at home. Some of the classes require users to own a Peloton Bike that made headlines in 2020 after costing over $2,000 (roughly Rs 1.5 Lakh).
Foley also highlights that outgoing employees will receive a ‘meaningful cash severance’ based on job level and tenure with Peloton. The company will be extending equity vesting periods for team members through the end of February and healthcare coverage for a while. Additionally, these workers are also eligible for career services through RiseSmart, Peloton adds. The US-based fitness company adds that Foley is stepping down as the CEO, with former Spotify and Netflix CFO Barry McCarthy stepping into the role.
His post adds, “To our North American team members who will be leaving: I want you to know this is not a reflection of your very important contribution to Peloton. We are grateful for you and your time here. I want to thank you, from the bottom of my heart, for sharing your talent and commitment with Peloton. I hope your experience while working here was a meaningful one, and will help you succeed in your next chapter."
Although Foley’s letter to employees may seem much better than firing 900 workers on Zoom, some users still reacted on Twitter. “Peloton fires over 2,000 employees and they think that a free 1 year subscription is sufficient," a user said. It seems many were unaware that the company is planning to offer cash severance.
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