and just like that
Not only was it announced Tuesday that CEO and co-founder John Foley — who has led Peloton "for its entire 10-year existence" — is stepping down, but the company is also cutting 2,800 jobs, The Wall Street Journal reports, "affecting 20 percent of its corporate positions." Foley will become executive chaiman, while Barry McCarthy, former CFO at Spotify and Netflix, will step in as CEO and president.
The firings will not impact Peloton instructors.
In interesting news for let-go employees, however, severance packages are said to include a free year-long Peloton membership, reports The Verge — because even though you lost your job at 10, you might still have that Beyoncé ride at 6.
Replaced CEO Foley said in a memo that the company saw "unprecedented demand" during the pandemic, but its "post-COVID demand picture looks different than anticipated." Hence, the job cuts, notes The Verge.
Foley also said the company was "equipping every team member leaving Peloton with helpful tools to make them as comfortable as possible as they explore their career path post-Peloton," not to mention a "meaningful cash severance allotment" and an unspecified extension of health care benefits.
"The monthly Peloton membership will be complimentary for impacted team members for an additional 12 months," Foley continued, per The Verge, though its unclear what might happen with those memberships if the company is acquired.