Peloton is considering sweeping layoffs in the company's sales and marketing departments, a recording obtained by Insider revealed.
In the recording, the exercise tech company's top executives discussed their layoff strategy, called "Project Fuel," to cut 41% of the sales and marketing teams, as well as letting go of employees on the ecommerce side and at 15 retail stores. The strategy is aimed at lowering redundancies by cutting positions with overlapping responsibilities. The executives said they plan to "spread out" the cuts instead of only weeding out lower- and mid-level employees.
"We can make it pretty easy by just stripping out low performers," one executive said referencing the company's recent talent review.
Peloton saw major early pandemic success as gyms shut down for months, leading the company to go on a hiring spree. As demand, revenue and share price dropped when the world opened back up, the company hired consulting firm McKinsey to review its cost structure.