- Peloton told employees last week it is cutting 800 jobs, closing stores and raising prices.
- An anonymous field specialist at Peloton, whose identity Insider has verified, describes the warning signs that predicted this latest round of layoffs at the company.
- This is their story, told to Insider’s Sarah Jackson. It has been edited for length and clarity.
I’m coming to nearly four years with Peloton, but I’m one of 800 workers whose jobs are being cut. As a field specialist I deliver bicycles and put them at customers’ homes.
When these cuts were announced, everyone was pretty shocked. We kind of knew something was going to happen, but we weren’t quite sure how. You could kind of see that something was going on, but our bosses couldn’t tell us what was going on because they weren’t told what was going on. Much of it was silent until this announcement.
It has been a very tough year for us. Until a few weeks ago, the only time I’d seen our warehouse this empty was when we first moved in. In the past, our entire racking system, where we store bicycles before they are delivered, would be full. There would be no more room to put anything else. Now they are mostly empty. So we thought, “Well, that was full last week, but why isn’t it full now? Where’s all our product?” No new stock enters our warehouse to replace the stock that leaves our warehouse.
After Peloton cut 2,800 jobs in February, my warehouse lost about half of its staff. Many people had to learn how to work with other systems to make sure everything worked as it should. Some days we didn’t have enough people to deliver, so a van had to cancel or reschedule appointments to another day when we had more staff.
We still look after the customer as best we can, but there’s not much we can do. We have fewer and fewer people, but they still expect us to deliver as much as we did when we had 100 employees, and that probably affects the customer experience.
I think Peloton and the customer are losing a little bit of the personal touch that Peloton offered through its white glove service. With the way our schedule is now, you could be in one location and you have a 45 minute to an hour ride to the next location to drop off and set up another bike, and you have eight or nine bike deliveries in one day.
After the layoffs in February, we all wondered, “Is this going to happen again?” It wasn’t until we showed up every day and saw our assignments that we knew, “Okay, we’re working today.” That’s how it has been for the past six months. Morale was extremely low because no one knew what was going on, and we saw our stock price keep going lower.
I think one of Peloton’s problems was mismanagement of funds. Peloton has wasted all that money building the production center that we’re not going to use anyway.
In the future, I think some of the product lines they have now may disappear or at least change. I’ve seen Peloton change its prices several times now, and it’s kind of weird that a company can’t decide what the price of their product is. I feel like you can always have a Peloton Instructor as there are plenty, but Peloton gear may not exist in the future.
It’s been a rollercoaster of a ride. When we are finally done it will be a little sad because I have really enjoyed working with the company and my teammates. Not sure what my next step would be. I’ll just start over and see what the next chapter will be written. I have a feeling this won’t be the end of austerity.
Peloton did not respond to a request for comment.