Peloton gave its 2,800 laid-off employees free memberships 'for an additional 12 months'
It's been a tough few months at Peloton.
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.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
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.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Brigid Kennedy worked at The Week from 2021 to 2023 as a staff writer, junior editor and then story editor, with an interest in U.S. politics, the economy and the music industry.
-
How AI-generated images are threatening science
Under The Radar Publishers and specialists are struggling to keep up with the impact of new content
By Abby Wilson Published
-
The Week contest: Demotivational coach
Puzzles and Quizzes
By The Week US Published
-
Magazine solutions - November 15, 2024
Puzzles and Quizzes Issue - November 15, 2024
By The Week US Published
-
Boeing machinists approve contract, end strike
Speed Read The company's largest union approved the new contract offer, ending a seven-week strike
By Peter Weber, The Week US Published
-
US economy still strong in final preelection report
Speed Read It grew at a solid 2.8% annual rate from July through September
By Peter Weber, The Week US Published
-
Boeing machinists reject deal, continue strike
Speed Read The rejection came the same day Boeing reported a $6.2 billion quarterly loss
By Peter Weber, The Week US Published
-
Ports reopen after dockworkers halt strike
Speed Read The 36 ports that closed this week, from Maine to Texas, will start reopening today
By Peter Weber, The Week US Published
-
Empty-nest boomers aren't selling their big homes
Speed Read Most Americans 60 and older do not intend to move, according to a recent survey
By Peter Weber, The Week US Published
-
Brazil accuses Musk of 'disinformation campaign'
Speed Read A Brazilian Supreme Court judge has opened an inquiry into Elon Musk and X
By Rafi Schwartz, The Week US Published
-
Disney board fends off Peltz infiltration bid
Speed Read Disney CEO Bob Iger has defeated activist investor Nelson Peltz in a contentious proxy battle
By Rafi Schwartz, The Week US Published
-
Disney and DeSantis reach detente
Speed Read The Florida governor and Disney settle a yearslong litigation over control of the tourism district
By Peter Weber, The Week US Published