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Tags: peloton | sports | business | mccarthy | foley

Laid-Off Peloton Workers Crash New CEO's Virtual 'All-Hands Meeting'

A Peloton advertisement is seen on The West Side of Manhattan
A Peloton ad in New York City, Sept, 22, 2020. (zz/STRF/STAR MAX/IP)

By    |   Thursday, 10 February 2022 05:52 AM EST

Peloton’s new CEO Barry McCarthy got more than he bargained for during a “virtual all-hands meeting” Wednesday after a group of angry laid-off employees started flooding the live chat with negative comments, CNBC reported.

The meeting was designed to introduce McCarthy, a former CFO at Spotify and Netflix, to the employees as he takes over for co-founder John Foley, who will step down as CEO to become the chair of the board for the company.

"Since founding Peloton a decade ago, we've grown this brand to engage and motivate a loyal community of more than 6.6 million Members,” Foley said in a press release Tuesday. “I'm incredibly proud to have worked with such talented teammates over the years who have helped me build Peloton into what it is today, and I'm confident that Barry is the right leader to take the company into its next phase of growth.”

It came, however, a day after the company announced it would be slashing some 2,800 corporate jobs as part of some $800 million in yearly cost reductions and another reduction of $150 million in capital costs this year.

The job cuts amount to about 20% of the company’s corporate workforce, the report said.

The high-end exercise equipment company, complete with online trainers, did very well during the height of the COVID-19 pandemic and subsequent lockdowns, as sales and training subscriptions soared, giving the company its first profitable quarters.

Sales and subscriptions have stalled in recent months, however, due to people spending on other items, and supply chain woes.

The Associated Press reported in November that subscriptions were expected to drop 6% and losses for 2022 to reach between $425 million to $475 million.

The company is expecting revenue of between $3.7-$3.8 billion, down from an earlier estimate of between $4.4 to $4.8 billion.

CNBC reported that sources with access to the meeting Wednesday asked Foley if the fired employees had access to the chat, and he said, “no comment.”

Some of the chat texts obtained by CNBC showed the frustration the former employees were dishing out during the meeting, which was ended early.

“I’m selling all my Peloton apparel to pay my bills!!!,” wrote one person.

“This is awfully tone deaf,” said another.

“The company messed up by allowing people who were fired into this chat,” another user wrote, according to CNBC. “Too late to mod [moderate] this."

Based on the report, the company is offering separated employees severance pay, employee career services and a monthly Peloton membership for 12 months.

Peloton stock rose 25% by Monday upon news of the change in the top spot to $37.27, raising the market capitalization to $12.2 billion.

© 2023 Newsmax. All rights reserved.

Newsfront
Peloton's new CEO Barry McCarthy got more than he bargained for during a "virtual all hands meeting" Wednesday after a group of angry laid-off employees started flooding the live chat with negative comments, CNBC reported.
peloton, sports, business, mccarthy, foley
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2022-52-10
Thursday, 10 February 2022 05:52 AM
Newsmax Media, Inc.

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