Peloton Fired 2,800 Employees And Gave Them Free Peloton Memberships To Make Up For It
Peloton is giving its laid-off staff members free exercise classes to make up for the sudden job loss.
On Tuesday, the bike brand revealed that it would be firing 2,800 people and the CEO claimed that there would be a “meaningful” severance package.
The following is a note Peloton Co-Founder and Executive Chair John Foley sent to the Peloton Team on February 8, 2022:
“I recently shared that we have been in the process of re-evaluating our costs across the entire organization to ensure we are appropriately structured for the post-COVID landscape. ..As part of this program, we’ve made the difficult decision to reduce the size of the Peloton team by approximately 2,800 positions globally. We are making changes at every level of the organization, including within our leadership team. Let me start with that.”
The exiting CEO added that “The Peloton monthly membership will be complimentary for impacted team members for an additional 12 months.”
In addition, the company claims that they will also add other incentives for North American team members who are impacted today, I want to share some of the things we are doing:
- Cash Compensation: We will be offering a meaningful cash severance allotment to impacted team members, based on job level and tenure with Peloton.
- Equity: We’ll be extending equity vesting periods for team members through the end of February.
- Healthcare: We’ll extend healthcare coverage for those currently enrolled in our benefits, as well as benefits through LYRA, for a period of time.
- Career Services: We’re offering career services through RiseSmart, a leading third party vendor. This includes transition services, dedicated 1:1 sessions, a Certified Resume Writer, Job Leads and Career Tools. Through this vendor, we’ll also be providing the option to voluntarily opt-in to a talent directory, which will showcase our incredible talent to leading employers.