Business Insider is reporting that Peloton held an “all hands on deck” meeting on Wednesday, November 10 (note that the article is behind a paywall, but you may be able to view the full article visiting their website through Google):
In a virtual all-hands meeting on Wednesday, top Peloton executives including CEO John Foley and Chief Financial Officer Jill Woodworth addressed the stock dip, the company’s plan to right the ship, and its recent hiring freeze – with Woodworth telling employees that the situation is “just as frustrating for all of us.”
Business Insider obtained a recording of the meeting and spoke with a current Peloton employee who described a “gloomy” atmosphere at the company in light of these recent developments. This is the second “all hands” meeting in only one week, as last Friday Peloton announced a hiring freeze after their Q1 2022 earnings call caused the stock price to drop 30% overnight.
According to the article, John Foley told employees that Peloton’s current situation was due to their rush to meet pandemic demand, which has slowed down dramatically in recent months. Throughout the pandemic Peloton struggled to fight long delivery wait times, and their efforts to meet the pandemic surge led them to be “a little undisciplined,” according to John Foley. For this reason, Peloton is taking a “back to basics” approach in an effort to build a more sustainable and predictable business model.
Jill Woodworth told employees that their central focus moving forward is subscriber growth. She explained at the meeting, “We have to make some adjustments to our cost structure in the near term, but we’re going to do it in a way where we’re not eroding our member experience.”
Peloton also took this opportunity to address the recent hiring freeze that was implemented last week. Peloton’s Senior VP and Global Head of People Sharon Eaton described the decision as a way to “reinvest” in Peloton’s current employees, now upwards of 8,862 people.
Peloton has promised exciting things in 2022, most recently unveiling their new strength product – the Peloton Guide – and a heart rate band, both of which will be released early next year.
According to Business Insider, John Foley maintained his confidence that Peloton will overcome these recent setbacks. “I’m here to tell you we’re going to win, but we do have to get tighter and leaner and better, and we’re going to have fun with it. We’re on the boat. It’s a fun boat.”
You can find the full report on Business Insider here.
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