Peloton is history
After Peloton slashed 2,800 jobs in February, Peloton is laying off an additional 800 employees. Peloton wasted money building the manufacturing center they’re not going to use. As usual, the employees pay the price for management ineptitude.
One of the jobs of a CEO is to ensure that their companies are strategically prepared for the future. The previous CEO of Peloton failed in this regard. Rather than understand that more people were buying these cycles because of COVID or that competition would heat up, he thought demand would stay strong.
Now Peloton is raising prices and cutting customer service and field specialists. Consumers in the market for a home exercise bike would be wise to avoid Peloton at all costs.
I think one of Peloton’s issues has been some mismanagement of funds. Peloton wasted all that money building the manufacturing center we’re not going to use after all.
Laid off Peloton employee
Peloton’s problems started last year when a young person was killed using one of their treadmills, but in this blogger’s opinion, their primary problem was believing their hype. The brand grew because many people were trapped in their homes and wanted ways to exercise. Sales started growing excited by the instructors, but soon, people complained about the monthly price of using Peloton online.
Peloton ramped up just after the peak had passed, and rather than grow responsibly, they hired like crazy without a thought about the long-term growth. Now the people who set up your Peloton product have heavy quotas and may be unable to keep up, while customer service people will be more challenging to reach.
Maybe some other brand, like Amazon, will but Peloton, but right now, they are a significantly damaged company headed for the failed brands of history book.
Originally published at https://www.newmediaandmarketing.com on August 18, 2022.