We are receiving reports that another round of layoffs has taken place at Peloton today.
These layoffs are part of another corporate restructuring initiative that Peloton is taking. (Update – This restructuring also appears to mean Peloton will be closing warehouses and moving to all third party delivery by the end of the year.)
Many of those laid off were working as customer support agents at Peloton’s member support centers located outside of New York City. This includes those working at Peloton’s Plano, Texas campus, which was announced to be expanding in December 2020. Layoffs are also impacting those at the customer support center in Tempe, Arizona, which was announced and opened last fall.
Many employees found out they no longer had a job when they got up to go to work and no longer could log into their email or work systems.
Peloton will be completely closing down both the Plano, TX and Tempe, AZ offices. Those employees who were not laid off today will now be full time remote.
Initial reports indicate that as many as 40-50% of the employees at some of these locations may have been impacted by today’s layoffs, but we are awaiting confirmation on that number.
Update – following our initial report, Bloomberg is reporting that around 250 jobs are being cut from the customer service teams today. Bloomberg reports: “The company will use third-party firms to handle support requests as needed to augment the staff it is keeping” They confirm that the layoffs today impacted about half of the customer services teams in these locations.
In a memo sent to remaining employees, Peloton CEO Barry McCarthy shared the reasoning behind this change:
After re-examining the resources required to provide our Members best-in-class support, we have also decided to reduce fixed costs by eliminating a significant number of roles on the in-house North America Member Support Team. In-bound Member support volume has been lower than forecasted, and like other parts of the business, we are going to expand our work with our third party partners. These expanded partnerships mean we can ensure we have the ability to scale up and down as volume fluctuates while still continuing to provide the level of service our Members have come to expect.
This is one of several restructuring and changes that have taken place at Peloton over the last several months. In February 2022, Peloton laid off around 20% of their employees as John Foley stepped down as CEO. Last month, Peloton announced they would be outsourcing all manufacturing moving forward.
This is a developing story and will be updated with more information soon.
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As someone who has been fighting to get customer services’ attention for at least 6 months… I’m incredibly disappointed to hear this. I understand the logic behind it, but we’re not getting the service we expect now… hopefully the third party source is better.
There goes everything that made this company stand out. Third party set up means the people now delivering and setting up the bikes won’t know how. I had a Nordic row and peloton delivered back in 2019. Peloton’s delivery was amazing, the delivery person knew that bike inside and out. The Nordic was a third party delivery and the kid they sent didn’t know how to put the row machine together, took forever reading the instructions, and had to borrow my tools! The same will apply to third party customer service. These changes will bring down the quality of the company for sure. What a shame.
I had a terrible delivery and terrible customer service . I still can’t even move my bike seat back and forth