Peloton Shutting Down Mount Vernon Plant, 75 Employees Face Layoffs
Peloton’s “meaningful reduction” hits Westchester facility and Long Island, NY
The ongoing restructuring at Peloton is affecting employees in New York. According to a Worker Adjustment and Retraining Notification Act (WARN) notice, Peloton’s Mount Vernon plant will close, affecting 75 employees. The announcement was posted on February 8th, citing economic reasons.
The Westchester facility is located at 300 East Sandford Blvd in Mount Vernon.
Long Island Peloton employees in Farmingdale and Port Washington will also be laid off, in addition to those at the Westchester plant. According to another WARN notice filed, the Port Washington facility at 85 Harbor Road will close, affecting 50 employees. At 855 Sea Lane in Farmingdale, 62 employees will be laid off.
In a recent earnings call earlier this month, Peloton’s former CEO, John Foley, said that the fitness company was taking “significant structural actions” to help align Peloton’s business. Foley shared that the fitness company planned to optimize its logistics footprint by reducing owned and operated warehousing and delivery networks.
In addressing the challenges that have plagued Peloton, Foley said the following on the call: “We acknowledge that we have made missteps along the way. To meet market demand we scaled our operations too rapidly and we overinvested in certain areas of our business. We own this. I own this and we are holding ourselves accountable. That starts today.”
In the same call, Peloton announced that it would scrap plans to build its own $400 million factory in Ohio.
Foley recently stepped down as CEO as Barry McCarthy assumed the role at Peloton. The company announced it would be cutting around 2,800 jobs, which Foley referred to as a “meaningful reduction” that was a difficult decision for its management team.
Peloton’s new CEO, Barry McCarthy, received a lukewarm response in his first all-hands meeting with Peloton employees, as angry employees vented frustrations at the layoffs and said that the company has been poorly managed. CNBC, who has been reporting extensively on the inner turmoil at Peloton, reported that the call ended early.
