Report: Peloton’s First All-Hands Meeting Goes Downhill
New Peloton CEO Barry McCarthy’s first meeting ended early after angry employees vent their frustrations
“You know your job will be hard when you get bullied in your first All Hands meeting by (former) angry employees,” wrote one user on Twitter about Peloton.
Barry McCarthy, Peloton’s new CEO, was met with a cold reception at his first company-wide meeting this past Wednesday. The virtual meeting was intended to introduce McCarthy as the new CEO of the connected fitness company. However, the meeting quickly went downhill.
The conversation between McCarthy and former CEO John Foley ended abruptly after current and former employees utilized the chat function to express frustration over layoffs and mismanagement.
CNBC obtained the messages from upset employees as they vented frustrations in the chat box:
- “I’m selling all my Peloton apparel to pay my bills!!!”
- “This is awfully tone deaf.”
- “The company messed up by allowing people who were fired into this chat,” another user wrote. “Too late to [moderate] this.”
Despite the angry comments, some participants welcomed McCarthy as the new leader of Peloton in the all-hands meeting.
CNBC, who has been reporting extensively on the inner turmoil at Peloton, reports that the call ended earlier than anticipated.
McCarthy, formerly of Spotify and Netflix, assumed the role at Peloton after Foley announced he would be stepping down and would transition to an Executive Chair position. The fitness company reports that the shake-up has been the culmination of a months-long succession plan that included roughly 2,800 jobs cuts. Peloton assured members that the changes would not impact instructor rosters, classes, or fitness modalities.
Peloton employees who find themselves on the chopping block would receive cash compensation based on job level and tenure, equity through the end of the month, extended healthcare coverage for a period of time, career services, and a complimentary Peloton membership for 12 months, according to the company.
Some have found the parting gift of a Peloton membership to be in poor taste.
“Firing Peloton employees and then giving them a free 1-year subscription is like a slap in the face,” Tweets @danielhuaa.
“While Peloton fires over 2800 employees, it’s CEO John Foley saw his total pay increase from 11M in 2020 to 18M in 2021. The working people that made Peloton successful are discarded & the CEO who made terrible business decisions is rewarded. Corporate corruption in a nutshell,” tweets @QasimRashid
The criticism isn’t new. Former CEO Foley’s decision to host a lavish holiday party at the Plaza Hotel in NYC last December upset its employees after Peloton canceled its company-wide annual party citing Covid and budgeting concerns.
Despite the Peloton’s ongoing challenges, Professor Scott Galloway, co-host of Pivot Podcast, recently pointed out that the fitness company has a rabid consumer base and instructors that have a massive following.
Foley reportedly sold $119 million worth of Peloton’s stock starting in November 2020, according to SmartInsider.
