Peloton has 6 months to show it can survive, 500 job cuts coming

A man walks in front of a Peloton store in Manhattan on May 5, 2021 in New York.

John Smith | Corbis News | Getty Images

Peloton has six months to prove it can survive as a standalone company, CEO Barry McCarthy said, according to a report in The Wall Street Journal.

Peloton also plans to cut 500 jobs, or about 12 percent of its workforce, the Journal said, adding that employees were told of the reductions Thursday. The company has already had several rounds of layoffs this year.

Shares of the fitness products company fell more than 4% in premarket trading after the report.

A Peloton spokesman did not immediately respond to a request for comment.

“If we don’t grow,” McCarthy, who took over as CEO earlier this year from co-founder John Foley, told the Journal. “We need to grow to bring the business to a sustainable level.”

This is a developing story. Check back for updates.

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