Peloton is making another round of job cuts just a day after announcing its partnership with the Hilton Group to put its bikes in 5,400 U.S. hotel locations by the end of the year.
The layoffs are expected to affect about 500 employees, equating to 12% of the Peloton workforce.
CEO Barry McCarthy said the reduction in workforce should enable the company to return to growth.
“The restructuring is done with today’s announcement,” said McCarthy. “Now, we’re focused on growth.”
McCarthy added that the company’s recent efforts, such as the partnership with Hilton and Amazon, will need to be used to prove that the company can, in fact, grow.
The deal between Peloton and Hilton includes 18 Hilton-branded hotels, including Double Tree, Embassy Suites, and Hampton Inn. Meanwhile, locations already offering Peloton bikes to their customers will have the option to add more bikes.
The deal Peloton inked with Amazon was the health and fitness brand’s first attempt to rely on an eTailer to sell its bikes and merchandise. It was also seen as the company’s effort to win back investors’ confidence as its revenue growth has continued to slide from pandemic highs along with its stock price.
Through the partnership, Amazon U.S. customers can shop for a selection of Peloton’s connected-fitness equipment, including its original Bike, which retails for $1,445, and the Peloton Guide, which costs $295. They can also shop for a selection of accessories and branded apparel, including Peloton’s cycling shoes, bike mat, weights, yoga blocks, water bottles, heart rate armbands, sports bras, leggings, shorts, tank tops, hats and jogger pants. The company is not making its Peloton’s Bike+ and Tread treadmill available for purchase on Amazon.
The recent round of layoffs marks the company’s fourth attempt to restructure its business.