A Timeline of Peloton's Recent Downfall
November 4th, 2021: Peloton Stock Falls by 36% After Earnings Report
Peloton Interactive (NASDAQ:PTON) reported fiscal 2022 first-quarter earnings after the market closed on Nov. 4. The results disappointed investors, and the stock price crashed by over 36% on the day after the announcement.That was quite a negative investor reaction considering how well the stock has performed over the past two years. Some would even argue it might be an overreaction.
December 9th, 2021: Peloton Rider Dies in Famous TV Reboot
Peloton has raced to defend its signature Bike after a scene in the first episode of HBO Max's Sex and the City revival, And Just Like That, featured the cycling hardware in a less-than-flattering way.The scene depicted Carrie's husband Mr. Big, played by Chris Noth, dying of a heart attack soon after he finished a 45-minute Peloton class on the company's Bike (with real instructor Jess King in a fictional role, we'd add). Peloton is worried viewers might think the Bike was responsible, and not just because the show might hurt sales — the company's stock price plunged between December 9th and December 10th, and it didn't get much better by the weekend.In a statement, Peloton health and wellness advisor Dr. Suzanne Steinbaum argued that Mr. Big's death likely occurred despite the Bike, not because of it. Big lived an "extravagant lifestyle" that included drinking, smoking and a steak-filled diet, and he'd even had a cardiac incident in SATC's sixth season. If anything, Dr. Steinbaum suggested, Big's riding might have "helped delay" his heart attack.
February 8th, 2021: Company Lays off 20% of Workforce & CEO Steps Down
Peloton is replacing embattled CEO John Foley and cutting about 20% of its workforce to help reinvigorate the flailing fitness company.Barry McCarthy, the former chief financial officer of Spotify and Netflix, will become its CEO and president, effective Wednesday. Foley will become the company's executive chair, and wrote in a public note that the appointment is the "culmination of a months-long succession plan" he's been working on with the board. The Wall Street Journal first reported the news.Peloton also announced it will lay off about 2,800 employees, including about 20% of its corporate positions. That was a move that Foley hinted at a few weeks ago. The company is also reducing the number of warehouses it owns and operates and expanding delivery agreements with third-party providers, that will help the company save $800 million in annual costs.