Peloton To Axe 2800 Jobs

(RTTNews) - Peloton Interactive, Inc. (PTON) that provides interactive fitness products in North America and internationally, on Tuesday said it plans to cut about 2800 jobs globally as part of its efforts to address key areas of the business and realign its operations.

Corporate positions would be reduced by approximately 20 percent. With regard to operations in the field, the company is reducing its owned and operated warehouses and delivery teams and expanding its commercial agreements with third party logistics providers.

It also announced a series of other steps including realigning business operations, reducing manufacturing footprint, and enhancing capital and operational efficiency to position the business, that could save at least $800 million annually.

The company also plans to reduce capital expenditures in 2022 by approximately $150 million. The restructuring program is expected to result in approximately $130 million in cash charges related to severance as well as other exit and restructuring activities and $80 million in non-cash charges. The majority of the charges would be recorded in fiscal year 2022.

Peloton is winding down the development of its Peloton Output Park (POP) manufacturing plan that would result in $60 million in restructuring capital expenditures.

Shares of Peloton Interactive are currently trading in pre-market at $29.10, down $0.65 or 2.18 percent from previous close.