Peloton is replacing its CEO, cutting jobs and reining in ambitious expansion plans after badly misjudging the staying power of the exercise-at-home trend that propelled its sales early in the COVID pandemic.
In a conference call with analysts on Tuesday, Foley acknowledged that the company expanded its operations too quickly and overinvested in certain areas of the business.
Peloton also found itself entangled in a marketing debacle in December. Its stationary bike was used in the first episode of “Sex and the City” spinoff “And Just Like That," but not in a flattering way. One of the characters, Mr. Big, dropped dead after a ride on a Peloton. The company reportedly knew about the product placement but not the plotline, leaving it scrambling to respond to the negative attention.
“I think the moves, as a whole, do not signify that Peloton is throwing in the towel. I believe this means they are going to slim down, refocus, and stay independent,” said Raj Shah, North America lead for tech, media, and telecom at digital consulting firm Publicis Sapient. Peloton said it's winding down the development of its Peloton Output Park factory in Ohio. It will also reduce its owned and operated warehousing and delivery locations and will instead ramp up its third-party relationships.
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