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 ...
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