Peloton, which announced a partnership with the Hilton Group to put its stationary bikes in 5,400 U.S. hotel rooms by the end of the year, is making another round of job cuts. The layoffs are expected to affect about 500 employees—roughly 12% of Peloton’s workforce.
CEO Barry McCarthy said the reduction in workforce should enable the company to return to growth.
“The restructuring is done with today’s announcement,” said McCarthy. “Now, we’re focused on growth.”
McCarthy added that the company’s recent efforts, such as the partnership with Hilton and Amazon, will need to be used to prove that the company can, in fact, grow.
The deal between Peloton and Hilton includes 18 Hilton-branded hotels, including Double Tree, Embassy Suites, and Hampton Inn. Meanwhile, locations already offering Peloton bikes to their customers will have the option to add more bikes.
The Peloton deal with Amazon was the health and fitness brand’s first attempt to rely on an eTailer to sell its bikes and merchandise, as well as its effort to win back investors’ confidence after the company’s revenue growth continued to slide along with the stock price.
Amazon has partnered with Peloton on a limited-time offer, offering Amazon customers a selection of the company’s fitness equipment and accessories. The partnership includes Peloton’s original Bike, which retails for $1,445; the Peloton Guide, which costs $295; and select accessories and apparel. Amazon is not making its Peloton’s Bike+ and Tread treadmill available for purchase on Amazon.
The recent round of layoffs marks the company’s fourth attempt to restructure its business.
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