The mass, one-day firings amounted to 20% of the New York City-based firm’s workforce. Peloton informed the 2,800 former employees that they would receive a “meaningful” cash severance package, including one-year free of Peloton membership, a $468 value.
Peloton co-founder John Foley noted to the staff in a termination letter under the heading, “Taking care of our Team,” that the firm was “equipping every team member leaving Peloton with helpful tools to make them as comfortable as possible as they explore their career path post-Peloton.”
Foley relinquished his role as chief executive, but will stay on as executive chair. His wife also will be leaving her position as vice president of apparel in the following months and is “amongst a number of other senior-level departures across various areas of the business…,” Foley wrote.
Barry McCarthy succeeded Foley as Peloton’s new CEO last month, Yahoo Finance reports.