Peloton, a leading US fitness equipment manufacturer, has experienced a sharp decline in sales and is closing branches and cutting 15% of its workforce. CEO Barry McCarthy is departing, and the company is actively seeking a new leader. The company initially benefited from the closure of gyms during the pandemic but made significant investments in expanding production capacities, which turned out to be a costly mistake. With excess inventory and cancelled factory construction, Peloton chose to outsource production to a contract manufacturer. Since 2021, there have been multiple rounds of job cuts, resulting in a loss of $167.3 million and dropping sales by four percent to nearly $718 million. The company’s stock market value has significantly decreased, with shares trading for less than $3 each. To regain its footing in the fitness industry, Peloton is reevaluating its showroom strategy and exploring options for refinancing with banks.
