With the pandemic-era shine tarnishing for Peloton, the maker of internet-connected fitness equipment, the company has implemented layoffs at its Bristol Township facility.
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According to a Worker Adjustment and Retraining Notification Act (WARN) notice filed recently with the Pennsylvania Department of Labor and Industry, Peloton announced they laid off 102 workers at their distribution site on Rittenhouse Circle in Bristol Township. The layoff took place earlier this month.
The company noted the job cut was permanent.
Just weeks before the layoffs, the company continue to post job listings for the Bristol Township distribution facility.
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In January, Peloton announced they were pausing production on a number of products, according CNBC reporting.
Peloton saw sales jump during the pandemic as more people were home. However, sales have slowed and the company has faced a recall with its Tread Plus machines after several injuries and the death of a child.
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Since that time, the company has hired a new CEO and taken other steps to cut costs.
Business Insider reported late last week Peloton has poured hundreds of millions of dollars into logistics in recent years. The website reported employees previously said the company’s warehouses became filled with unsold bikes.
Barry McCarthy, the company’s new CEO, told the New York Times on Saturday the company’s costs grew too much.
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“The cost structure got out of whack with revenues, and they spent money on things that they shouldn’t have,” he said to the newspaper.
“In the early days of the pandemic, Peloton’s biggest problem was its struggle to meet skyrocketing demand, resulting in months-long shipping delays that the company spent millions to address. Another issue is that Peloton went on a massive spending spree while things were going well. In December 2020, the company forked over $420 million to buy commercial fitness equipment maker Precor. It then spent another $400 million to build a factory in Ohio,” The Verge reported in January.
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Peloton’s stock hit a high of $162.72 on December 24, 2020. As of early Tuesday afternoon, the stock was just above $28 per share.
Peloton released their first stationary bicycle in 2014 and has expanded globally in the years since.
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