Home Business News Peloton Makes Critical Changes Amid Steep Losses

Peloton Makes Critical Changes Amid Steep Losses

Peloton Set To Cut Jobs and Hire New CEO

Peloton, the fitness tech company that burst to the forefront of consumer attention during the pandemic, is having a rough start to 2022. The company reported a whopping total of $439.4 million in net losses over the course of the latest fiscal reporting period. As a result, the company is cutting roughly 20 percent of its global corporate workforce, 2,800 jobs, and has decided to onboard Barry McCarthy, the former CFO of Spotify, to replace co-founder John Foley as Peloton’s CEO. According to Retail Dive, there has also been speculation concerning a possible acquisition from Amazon, Nike, Apple, or Lululemon. According to GlobalData Managing Director Neil Saunders, the reasons behind Peloton’s fall from grace are simple. “Peloton incorrectly assumed that the demand created by the pandemic — as people switched away from gyms to home fitness — would continue to curve upward.” Instead, Peloton was impeded by a number of factors including product recalls, negative publicity, and an overall return of the country to in-person activities. 

As we reported yesterday, labor shortages are continuing to plague the national economy despite a 5.7 percent increase in wages in 2021. A whopping 47 million people, roughly 30 percent of the American workforce, quit their jobs last year and as a result, there has been rampant competition among major corporations for top talent. This week, in a bid to incentivize top tech and corporate talent to stay with the company, Amazon raised the max base pay for some of its employees to $350,000. For a while, Amazon has been known to cap its base pay at $160,000, which was traditionally far lower than competitors, according to The New York Times and Insider.   

In other news, on Wednesday, Samsung announced the release of the S22 Ultra, the company’s latest smartphone, in the first Samsung Unpacked event of 2022. The primary feature that sets the S22 Ultra apart from its predecessor, the S21 Ultra, is the updates to the camera. The S22 Ultra sports a 108-megapixel camera with an f/1.8 aperture lens that comes with Samsung’s 100x Space Zoom capabilities. The 4-nanometer system-on-a-chip featured in the S22 Ultra is also a key update as it supports the latest connectivity standards, including WiFi 6E and Bluetooth 5.2. At the Unpacked event, Samsung also announced the release of the Galaxy Tab 8 series, which features the largest screen of any Samsung Tablet to date. These products are available now for pre-order on Samsung’s website. Third-party accessories for the new Samsung devices are already coming out. Vinci Brands has announced a series of case solutions from Incipio, which include designs from notable fashion brands such as Coach and Kate Spade New York.


5 Things To Consider When Choosing A VPN

Samsung Delivers On Sustainability Goals With Galaxy S22 Family

Garmin Instinct 2 Solar Smartwatches May Never Need Charging

Apple to Offer Paid Parental Leave and More Sick Days to Retail Employees

Bed Bath & Beyond Decluttered Its Stores and Ended Up Frustrating Shoppers

HP Expands Amplify Impact Partner Sustainability Program Across 24 New Countries