A bad week for stationary bikes: A look inside the downfall of SoulCycle and Peloton after the former fitness giants slashed hundreds of jobs and closed stores on the same day
Peloton and SoulCycle, two of the biggest names in indoor cycling, both announced layoffs and closures within hours of each other Friday — the latest in a progressive decline for the once-beloved fitness brands as Americans shift exercise preferences.
The announcement marked the third round of layoffs for the company this year. Peloton fired 2,800 people in February and axed its Taiwan-based employees in July, bringing the total to more than 4,150. The cuts are part of McCarthy's turnaround strategy following consecutive quarters of sales slumps. the company will close 19 studios in"oversaturated markets," a move she said will"lead to a number of our teammates losing their employment with SoulCycle.
"Their original S1 filings reflected a huge market share forecast that was always unlikely, yet they built the business around anticipated continued hyper growth," O'Rourke told Insider. As a result, online marketplaces areas consumers look to recoup money spent on bikes now collecting cobwebs as they return to in-person fitness.
"The timing was appropriate to look at our studio footprint by market to understand whether we continue to believe that we had indeed oversaturated some markets, and the conclusion is that after much work and analysis, that perhaps we have," Webster said, according to audio leaked to Insider.
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