Amazon, Nike to acquire Peloton?

In the meantime, the company is replacing the CEO and cutting 2,800 jobs...

Peloton

After the pandemic has helped the company move more of its connected fitness products than ever before, Peloton is now facing a crisis which could end up with some bigger player acquiring the maker of popular connected bikes and treadmills.

According to The Wall Street Journal report, Amazon “has been speaking to advisers about a potential deal.”

Another company that may be interested in buying Peloton is Nike, though there are other parties that could make a similar move as well — Apple being one of them.

Naturally, nothing official came from Peloton nor any of the potential buyers. What we do know is that Peloton got a new CEO and has axed some 2,800 jobs — or around 20% of its corporate workforce.

“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. After careful review, we’ll be driving strategic initiatives across our global team that will help us focus on areas that are in need of adjustment, including implementing a comprehensive restructuring program,” CEO John Foley wrote in a letter to employees.

Foley himself will now be an executive chair, with Barry McCarthy — a former CFO of both Spotify and Netflix — presuming the role of the CEO. Also, William Lynch — Peloton’s president — will become a non-executive director on the company’s board. The company announced a slew of new appointments to its board as well.

The news doesn’t stop there as in addition to the layoffs, Peloton also announced that it will end the development of its Peloton Output Park manufacturing plant and reduce its warehousing and delivery operations.

One thing is certain, the Peloton drama has just begun and we expect to see it unfolding in the weeks to come. Stay tuned in the meantime…