4 ms·

Peloton fires over 2,800 employees, gives them a free 1-year subscription

41 points by terabytest 5y ago

bitxbitxbitcoin 5y ago
At 40 a month that is not even $500 of value. Also… What if they don’t own a Peloton?
- celticninja 5y ago
  It does stop their subscriber numbers dropping by 2800 in Q1, regardless of whether the subscriptions are used or even paid for.
mrbadideas 5y ago
perryizgr8 5y ago
> Peloton is firing over 2,800 employees — 20% of its corporate workforce Why does an exercise bike manufacturer employ ~14000 corporate people? Isn't that a bit much?
- bdcravens 5y ago
  They've tried to expand beyond that original product, and they have kiosks in malls, which I assume are employees as well.
babycake 5y ago
> As part of the severance plan for the over 2,800 laid off employees, Pelton is offering a curious benefit: A membership to Peloton. Is that it? There's nothing more in their severance? I wish the article would explain this more.
- grimjack00 5y ago
  It does say _part_ of the severance is the membership, so there must be _something_ else.
travisporter 5y ago
> With gyms re-opening as vaccine rates increased, Peloton's business took a huge hit: The company's market value has dropped from $50 billion last year to $9.8 billion as of early February 2022. Did people not think that once covid is on the downswing people will exercise in gyms or go outdoors more? If we have such smart people going into finance why does this happen?
- dcchambers 5y ago
  People are obsessed with short term gains. I reckon most people knew the stock was overvalued in the long term and simply wanted to get in and sell at a profit before it inevitably settled in to a proper value.
salawat 5y ago
In before the subscription is opt-out required auto-renewal.
sithadmin 5y ago
That's one way to boost subscription count.
strangesongs 5y ago
related content: https://www.thedailybeast.com/peloton-ceo-john-foley-banned-staff-holiday-parties-then-held-his-own-incredibly-lavish-bash https://www.thedailybeast.com/peloton-ceo-john-foley-banned-... CEO held a holiday party for talent/trainers while encouraging thrift/cutbacks for all other employees
low_tech_love 5y ago
Who could’ve predicted that this might happen when the pandemic got under control? Just kidding, I’m sure many people predicted it (and made a lot of money).
conartist 5y ago
The CEO slides were absolutely brutal https://twitter.com/silviakillings/status/1491040849655959556/photo/1 https://twitter.com/silviakillings/status/149104084965595955...
isitmadeofglass 5y ago
When people ask questions like “how can CEO compensation be so high for person X? There is no way they add that much value to the company” What they forget is that even a CEO that adds little to no value over time, is phenomenally more positive for the baseline of a company than one who derails the entire company. And the fact of the matter is that it’s easy as a CEO to detail a company and 99.999% percent of people would likely do without ever thinking their actions or inaction was what caused it. It can happen as innocently as just passively assuming that your CFO is fully capable of managing all the finances, or assuming everything is perfectly fine with your technology because “it’s just a simple thread mill” or by assuming that all media coverage is good media coverage so just ignoring how your brand is managed. Now of cause everyone is thinking “I’d never do that if I was the CEO of a company”. But these are all the known examples you have in front of you, everyone things they be able to sail the titanic around the iceberg, even if they have no sailing experience at all, yet it wasn’t a random guy of the street who managed the ship when it happened. The important part is putting your attention on the right points. A CEO who is micromanaging the finances, the branding and the technology is also going to be a huge problem for a company. As a ship captain who spends 16hours staring after icebergs every day is also going to be ineffective. And there might be other potential bombs in other companies that need attention. Point is that being a great CEO doesn’t always mean a 10X growth in value. Sometimes it even means just limiting a loss to 5% through a rough patch when most people would have let it go to 25% lost without, sometimes it means to not fumble the ball when life throws a huge opportunity your way. You know like selling personal exercise equipment when every fitness center closes down due to a global pandemic.
- jjeaff 5y ago
  All that may be true. But we don't pay people based on how much they make for the company. We pay them based on supply and demand. And I believe the pool of people that can do the job of the big company CEO is way larger than the $100m plus pay packages would indicate. Companies go with the high dollar rockstar CEOs for the same reason they select IBM or Oracle and pay up the nose for substandard results.
  - isitmadeofglass 5y ago

41 points by terabytest 5y ago

bitxbitxbitcoin 5y ago

At 40 a month that is not even $500 of value. Also… What if they don’t own a Peloton?

celticninja 5y ago
It does stop their subscriber numbers dropping by 2800 in Q1, regardless of whether the subscriptions are used or even paid for.

mrbadideas 5y ago

perryizgr8 5y ago

> Peloton is firing over 2,800 employees — 20% of its corporate workforce Why does an exercise bike manufacturer employ ~14000 corporate people? Isn't that a bit much?

bdcravens 5y ago
They've tried to expand beyond that original product, and they have kiosks in malls, which I assume are employees as well.

babycake 5y ago

> As part of the severance plan for the over 2,800 laid off employees, Pelton is offering a curious benefit: A membership to Peloton. Is that it? There's nothing more in their severance? I wish the article would explain this more.

grimjack00 5y ago
It does say _part_ of the severance is the membership, so there must be _something_ else.

travisporter 5y ago

> With gyms re-opening as vaccine rates increased, Peloton's business took a huge hit: The company's market value has dropped from $50 billion last year to $9.8 billion as of early February 2022. Did people not think that once covid is on the downswing people will exercise in gyms or go outdoors more? If we have such smart people going into finance why does this happen?

dcchambers 5y ago
People are obsessed with short term gains. I reckon most people knew the stock was overvalued in the long term and simply wanted to get in and sell at a profit before it inevitably settled in to a proper value.

salawat 5y ago

In before the subscription is opt-out required auto-renewal.

sithadmin 5y ago

That's one way to boost subscription count.

strangesongs 5y ago

related content: https://www.thedailybeast.com/peloton-ceo-john-foley-banned-staff-holiday-parties-then-held-his-own-incredibly-lavish-bash https://www.thedailybeast.com/peloton-ceo-john-foley-banned-... CEO held a holiday party for talent/trainers while encouraging thrift/cutbacks for all other employees

low_tech_love 5y ago

Who could’ve predicted that this might happen when the pandemic got under control? Just kidding, I’m sure many people predicted it (and made a lot of money).

conartist 5y ago

The CEO slides were absolutely brutal https://twitter.com/silviakillings/status/1491040849655959556/photo/1 https://twitter.com/silviakillings/status/149104084965595955...

isitmadeofglass 5y ago

When people ask questions like “how can CEO compensation be so high for person X? There is no way they add that much value to the company” What they forget is that even a CEO that adds little to no value over time, is phenomenally more positive for the baseline of a company than one who derails the entire company. And the fact of the matter is that it’s easy as a CEO to detail a company and 99.999% percent of people would likely do without ever thinking their actions or inaction was what caused it. It can happen as innocently as just passively assuming that your CFO is fully capable of managing all the finances, or assuming everything is perfectly fine with your technology because “it’s just a simple thread mill” or by assuming that all media coverage is good media coverage so just ignoring how your brand is managed. Now of cause everyone is thinking “I’d never do that if I was the CEO of a company”. But these are all the known examples you have in front of you, everyone things they be able to sail the titanic around the iceberg, even if they have no sailing experience at all, yet it wasn’t a random guy of the street who managed the ship when it happened. The important part is putting your attention on the right points. A CEO who is micromanaging the finances, the branding and the technology is also going to be a huge problem for a company. As a ship captain who spends 16hours staring after icebergs every day is also going to be ineffective. And there might be other potential bombs in other companies that need attention. Point is that being a great CEO doesn’t always mean a 10X growth in value. Sometimes it even means just limiting a loss to 5% through a rough patch when most people would have let it go to 25% lost without, sometimes it means to not fumble the ball when life throws a huge opportunity your way. You know like selling personal exercise equipment when every fitness center closes down due to a global pandemic.

jjeaff 5y ago
All that may be true. But we don't pay people based on how much they make for the company. We pay them based on supply and demand. And I believe the pool of people that can do the job of the big company CEO is way larger than the $100m plus pay packages would indicate. Companies go with the high dollar rockstar CEOs for the same reason they select IBM or Oracle and pay up the nose for substandard results.
- isitmadeofglass 5y ago