Peloton Stock (NASDAQ:PTON)
Peloton stock (NASDAQ:PTON) soared 6% on Thursday. By 10:58 a.m. By 3:30 p.m. ET, shares had dropped 1.2%.
Peloton’s (NASDAQ:PTON) impetus for surging higher before it fell was a rumor that the fitness firm wanted to downsize its employees again to halt its rising losses.
What’s the Reason?
The Wall Street Journal reports that Peloton (NASDAQ:PTON) intends to let off as many as 500 additional workers, or approximately 12% of its existing staff, as part of the company’s extensive turnaround efforts. Over half of the company’s employment will be eliminated via layoffs, bringing the total number of employees down to around 3,800. These layoffs are the fourth round of layoffs in 2018.
This follows on the heels of 600 layoffs announced by Peloton (NASDAQ:PTON) in June and 800 more in August. In February, the business laid off the most people ever: 2,800.
CEO Barry McCarthy has declared that this is the last major layoff the business will make, but he is not backing down from the fact that the company only has “another six months or so” to turn things around. According to the article, if such initiatives fail, he doesn’t think Peloton stock would be able to continue operating independently.
What Should You Do Now?
At the height of the epidemic, Peloton (NASDAQ:PTON) was on top of the world, but when everyday life resumed, the company lost ground for six consecutive quarters. In the most recent quarter ending June 30 (finished fiscal 2022), Peloton stock lost $1.2 billion, increasing their overall loss for the fiscal year to $2.8 billion.
Peloton (NASDAQ:PTON) has reduced staff, moved its training equipment overseas production, and reduced pricing on the sluggish stock to get back on track financially. The Peloton Bike+ and Peloton Tread, two of the company’s best-selling connected workout equipment, have also increased prices.
Whether or if the company’s efforts pay off, in the long run, is still up in the air. I haven’t sold any of my Peloton stock, but I haven’t bought any. Tread cautiously with Peloton stock until it indicates its turnaround is taking hold.
Featured Image- Megapixl @ PhotoGranary
Author Shariq Khan 
