Peloton to cut about 12% of workforce in a move to 'save' company

Oct 6 (Reuters) - Peloton Interactive (PTON.O) is planning to cut about 12% of its workforce, in what will be its fourth round of layoffs this year to "save" the fitness equipment maker, a memo sent to its staff showed on Thursday.

The company's latest move to lay off 500 global jobs also marks its final step of restructuring, which began under the watch of Barry McCarthy who took over as Peloton's chief executive officer in February.

"I know many of you will feel angry, frustrated, and emotionally drained by today's news, but please know this is a necessary step if we are going to save Peloton, and we are," McCarthy said in the internal memo seen by Reuters.

Peloton was one of the biggest beneficiaries of COVID-19 lockdowns as its connected exercise bikes and treadmills became all the rage among stuck-at-home fitness enthusiasts.

However, the pandemic-induced momentum in sales soon petered out with the reopening of gyms and fitness centers, pushing the company into a string of quarterly losses and forcing it to take drastic measures to cut costs.

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