Fitness unicorn Peloton appears to be facing an even tougher challenge as it tries to turn around its struggling finances.
Earlier this month, popular instructors Christine McGee, Kendall Toole and Ross Rayburn announced their departure.
in A tearful Instagram post On June 17, Maggie announced she was leaving Peloton after six years to spend more time focusing on “my family and my boys.” She added that all of her content will remain online and on-demand, and fans will still be able to contact her.
A few days ago, Toure made the announcement on Instagram. He revealed his decision to leave the team, thanked his fans and the peloton for giving him “an incredible life-changing opportunity” and asked his followers to “stay tuned to see what happens next.”
“Like all companies that work with professional athletes, instructor agreements are a normal and ongoing part of Peloton’s process,” a company spokesperson said in a statement. luck“During recent contract negotiations, three of our beloved instructors have decided to leave for new opportunities. Each of them brings their own special magic that has helped build the amazing Peloton community that it is today. We are incredibly grateful and wish them the best of luck; our doors will always be open to them, so this is not a final goodbye and we hope to see you again at a later date. As we look to our future, we are excited about the opportunity to add new talent to our instructor roster and continue to provide our members with a best-in-class experience.”
To be sure, the company is retaining much of its talent: 54 of Peloton’s 57 instructors have terminated their contracts, according to a source familiar with the negotiations.
Peloton’s top instructors are known for having devoted fanbases, so the departure of its three big-name stars could be a major blow to the company as it tries to rebuild a business that grew rapidly during the pandemic as people looked for ways to exercise at home.
But since the pandemic ended, things have become tougher. Third Quarter Report Peloton last month reported that total revenue fell 4% year over year to $717.7 million as sales of its connected fitness products fell 14%, while membership numbers fell 1% to 6.6 million and paid app subscription terminations fell 21% to 674,000.
Peloton also announced last month that Barry McCarthy would step down as CEO, president and director, just two years after succeeding founder John Foley, and that the company plans to lay off 15% of its workforce, or about 400 people, in an effort to cut costs.
Peloton’s fall has been as swift as its rise: At its peak in January 2021, the company’s market cap soared to more than $100 billion. $45 billion The company’s shares soared when lockdowns forced people to seek out virtual group cycling classes. Since then, the company’s value has fallen more than 90% and is hovering around $1.3 billion. It closed at $3.61 on Friday, just shy of its all-time high of more than $170.
The company recently Announced The company plans to partner with Hyatt to install the equipment in more than 800 hotels. 5,400 Hilton hotels in the United StatesBut analysts say the company’s latest strategy isn’t enough.
The company’s troubles also included a series of controversies, including: Sex and the CityPeloton advertising star Chris Noth was accused of sexual assault in 2021, and the company Cancel a campaignPeloton I remembered That same year, the company stopped selling the Treadplus treadmill after a child was killed while using it. Foley stepped down as CEO in 2022. Rumors They blamed McCarthy for failing to accurately predict the market and dealing with product recalls, and he tried to restore the company to profitability by laying off thousands of employees and outsourcing work to third parties.
