Yesterday, Peloton unveiled a plan that calls for approximately 2,800 job cuts and replacing its CEO John Foley, who has faced widespread criticism over his leadership in recent months. Foley is to step down, though he’ll stay with Peloton as its executive chairman of the board.
Investors appeared to react positively to the turnaround plan and mass layoffs, as the Web-connected bike maker’s stock surged up 29% on the day, at $38.38 early Tuesday afternoon. Though, the company’s shares are still down more than 75% over the past year.
The rally came despite Peloton sharing relatively bleak earnings on Tuesday. During the last quarter of 2021, Peloton reported a $439.4 million dollar net loss — compared to a net income $63.6 during the same period in 2020.
As for the thousands of former Peloton employees… the company is offering them free fitness classes for 12 months as part of a severance package, which comes in addition to more typical layoff measures including cash payments, extended health care coverage and help finding new jobs.
Get instructions on how to enable our Flash News Briefing skill to your Amazon devices: