Peloton and SoulCycle both announced layoffs and closures on Friday, August 12th. What does this mean for the stationary bike modality?
According to CNBC, Peloton announced on Friday, August 12, that it would be eliminating around 780 jobs in a third round of layoffs for the at-home technology and equipment manufacturer.
In addition, the company said it would close a significant number of its retail stores and increase prices on specific products in an attempt to continue to right-side the business.
A spokesperson for Peloton, Ben Boyd, confirmed the news in a statement to The Verge.
In February 2020, Peloton announced a restructuring program that involved the company cutting approximately 2,800 global positions and winding down the development of its Peloton Output Park (POP) manufacturing plan.
Last month, Peloton cut around 600 jobs in Taiwan as part of a move to reduce in-house manufacturing, according to The Verge.
On Friday, SoulCycle also announced it would be closing 19 studios and laying off an unspecified number of positions.
According to Business Insider, “SoulCycle CEO Evelyn Webster announced the closures in an all-hands meeting with staffers on Friday morning.”
Peloton and SoulCycle’s news come amidst an evolving fitness landscape since the start of the COVID-19 pandemic. During mandated shutdowns, at-home workouts and equipment purchasing boomed, a trend that has since waned now that gyms are open across the U.S.
That said, many gyms operators have reported a struggle to bring back members to indoor cycling programs in particular.
What does this indicate for the stationary bike modality?
Sucharita Kodali, a principal analyst at business research and analysis firm Forrester, was asked to comment to Business Insider and said: while stationary bikes will always be part of the American fitness scene, the reductions at SoulCycle and Peloton show the “significant slowing down” of the trend.
