Leaked audio shared with Business Insider has revealed Peloton executives discussing laying off 41% of its sales and marketing teams.
Executives were also heard saying that they could start by “stripping out low performers” in ecommerce.
The sports technology company has had a troubled few months after its stock price plummeted and poor product placement in HBO’s “Sex and the City” reboot which disappointed fans.
Peloton has reportedly hired consulting firm McKinsey to help swing the ax, CNBC reported.
On the call, all of the executives appeared to agree to 41% cuts however it remains to be seen whether this will be the true figure when the axe swings.
The firm performed strongly during the early stages of the pandemic, with customers scrambling to purchase its expensive, stationary bikes and treadmills as gyms closed their doors.
Peloton’s chief executive John Foley said the company’s rush to hire to meet the pandemic surge in demand made the company “a little undisciplined,” according to Business Insider.
Since the initial pandemic boom and subsequent dip, Peloton has created “Project Fuel” to optimise its spending and create a layoff strategy.
There are 15 retail stores also on the “cut line” according to the executives in the call.
Peloton’s ecommerce department appears to be the target for the lay offs, with one executive heard saying: “We can make it pretty easy by just stripping out low performers.”
Another executive added that they can see the firm “ripping out” roughly 30% of inside salespeople.
At the end of the call, the team of execs were also heard complaining about the app’s inability to convert sales from users.
One exec saying: “The app is such an underutilised tool for us right now in this, our app is terrible.”