FILE - A person works out on a Peloton high-tech stationary bike in his apartment on May 18, 2020, in New York City. (Photo by Michael Loccisano/Getty Images) NEW YORK - Peloton is looking to trim hundreds of jobs as the company continues to reorganize its business which has stalled as the coronavirus-related surge fades.The maker of high-end exercise equipment plans to cut approximately 500 jobs or about 12% of its workforce."A key aspect of Peloton’s transformation journey is optimizing efficiencies and implementing cost savings to simplify our business and achieve break-even cash flow by the end of our fiscal year," a company spokesperson said in a statement.Peloton Interactive Inc.
said Thursday that it has completed the vast majority of a restructuring plan that it started in February. That plan included a new chief executive and a smaller store base.Peloton has been attempting to adjust its business to the current market after experiencing incredible sales growth during the height of the coronavirus pandemic.
The New York-based company's shares surged more than 400% in 2020 amid lockdowns that made its bikes and treadmills popular among customers who pay a monthly fee to participate in its interactive workouts.But Peloton's sales began to slow last year as the distribution of vaccines sent many people out of their homes and back into gyms.
A recent study found physically active younger adults could see big savings in Medicare costs as senior citizens.The company has steadily worked on its restructuring efforts this year.