Lifestyle
Peloton is laying off workers and replacing the CEO — again
Peloton hit the skids after its pandemic boom, struggling to figure out how to grow beyond sales of luxury fitness equipment.
Ezra Shaw/Getty Images
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Ezra Shaw/Getty Images
Peloton hit the skids after its pandemic boom, struggling to figure out how to grow beyond sales of luxury fitness equipment.
Ezra Shaw/Getty Images
In a Peloton déjà vu, the fitness-equipment company is cutting 400 jobs and looking for a new CEO as it struggles to shape a business model beyond selling expensive stationary bikes.
Just two years ago, Peloton replaced its co-founder John Foley in the CEO seat with Barry McCarthy, formerly of Netflix and Spotify. That shakeup included laying off 2,800 employees, or about a fifth of them, followed by other rounds of job cuts.
On Thursday, Peloton once again announced layoffs — this time of 15% of its workforce, or about 400 positions. It will continue to close physical showrooms. And now it’s McCarthy’s turn to step down; another CEO search begins anew.
“I once described turnarounds as a full contact sport; intellectually challenging, emotionally draining, physically exhausting, and all consuming,” McCarthy wrote on Thursday. “From where I sit today, that pretty much summarizes my experience these last two years.”
About the layoffs, he said Peloton “simply had no other way to bring its spending in line with its revenue.”
The cost-cutting comes as Peloton tries to stop losing money and grow past its identity as a seller of luxury fitness equipment. Under McCarthy, with his expertise in subscriptions, Peloton has tried to focus more on corporate wellness, removed the free app membership option and struck deals with companies like Lululemon and Hyatt hotels.
McCarthy said Peloton was able to improve a key financial metric of free cash flow. But a subscription revolution did not happen.
Peloton’s stock value has plummeted more than 90% since the pandemic-era boom, when lockdowns had people splurging on Peloton’s $2,000 stationary bikes plus a monthly fee for video-streamed classes. As people returned to their gyms and fitness studios, Peloton’s equipment gathered dust.
Then came a series of safety crises. Peloton tussled with federal officials over an eventual recall of treadmills. They had caused dozens of incidents including a death of a 6-year-old. Peloton’s handling of all this resulted in a $19 million fine. Last year, the company also recalled nearly 2.2 million bikes.
Peloton sales continued to wobble throughout. Now, the company is approaching a deadline to refinance more than $1 billion in debt. Executives count on the new restructuring plan to cut expenses by more than $200 million by the end of its 2025 fiscal year.
McCarthy will remain an advisor to Peloton until the end of the year.
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L.A.’s latest viral party spot is … Seafood City. Yes, you read that right
Under the glow of fluorescent lights at Seafood City market in North Hills, packages of pre-made adobo, salted shrimp fry and and dried anchovies glisten in meat coolers.
A DJ, dressed in a traditional barong, blasts a dance remix of Whitney Houston’s “I Wanna Dance with Somebody” as a crowd gathers to take a shot of fish sauce together.
“That was disgusting!” a man shouts into the mic, flashing a grimacing expression.
At Seafood City, DJs 1OAK, left, EVER ED-E and AYMO spin in barongs, the Philippines’ national formal shirt.
The smells of lechon and lumpia float through the air. Smiling children munch on halo-halo (a Philippine dessert made with ube ice cream, leche flan and shaved ice). Flags of the Philippines wave in the air as a man in UCLA Health scrubs hops into the center of an energetic dance circle. Employees shoot store coupons out of a money gun and toss bags of Leslie’s Clover Chips into the crowd. Fathers hold their children on their shoulders as a group of college students perform a Tinikling routine, a traditional Philippine dance in which performers step and hop over and between bamboo poles.
“This is so Filipino,” a woman says, in awe of the scene.
Sabria Joaquin, 26, of Los Angeles, left, and Kayla Covington, 19, of Rancho Cucamonga hit the dance floor at “Late Night Madness” in North Hills.
“I came here for groceries,” explains an elderly man, adding that he decided to stay for the party.
Seafood City, the largest Philippine grocery store chain in North America, typically closes at 9 p.m. But on certain Friday and Saturday nights, its produce or seafood aisle turns into a lively dance floor for “Late Night Madness.” On social media, where the gathering has exploded, it looks like a multigenerational nightclub that could use dimmer lighting. But for attendees who frequent the store, it’s more than that. It’s a space for them to celebrate their Filipino heritage through food, music and dance in a familiar setting.
“This is something that you would never expect to happen — it’s a grocery store,” says Renson Blanco, one of five DJs spinning that night. He grew up going to the store with his family. “My mom would [put] us all in the minivan and come here, and she’d let us run free,” he adds. “It’s comfortable here. It’s safe here.”
1. Rhianne Alimboyoguen, 23, of Los Angeles follows an employee through the produce section. 2. Allison Dove, 29, left, and Andrea Edoria, 33, both of Pasadena, enjoy Philippine street food. 3. Katie Nacino, 20, left, Daniel Adrayan, 21, and Sean Espiritu, 21, of the Filipino American Student Assn. at Cal State Northridge, practice tinikling, a traditional Philippine folk dance, in an aisle.
The first Seafood City location opened in 1989 in National City, a suburb of San Diego, which has a nearly 20% Asian population including a rich Filipino community. For its founders, the Go family, the mission was simple: to provide a market where Filipinos and people within the diaspora could comfortably speak their native language and buy familiar products. It’s since become a community anchor. Of the nearly 40 locations in Northern America, at least half of them are based in California, which has the highest population of Asian Americans in the United States.
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The first “Late Night Madness” event happened in September in Daly City, Seafood City’s newest location. The company wanted to launch a street food program at the store’s food hall in a fun and creative way.
The DJ played a selection of hip-hop, pop, soul and classic Pinoy records like VST & Company’s “Awitin Mo, Isasayaw Ko.” Hundreds of people showed up, and videos of people of all ages turning up in the popular supermarket spread like wildfire. So the company decided to continue hosting the event in October during Filipino American History Month and for the rest of the year. It’s since expanded to more locations around the country and in L.A., including Eagle Rock.
By 10 p.m. at the Seafood City in North Hills, at least 500 people are dancing in the produce section, next to rows of saba bananas, fresh taro leaves and bok choy. The lively crowd forms dance circles throughout the night, taking turns jumping in the center to show off their moves to songs like Earth, Wind & Fire’s “Let’s Groove,” “Nokia” by Drake and Justin Bieber’s “I Just Need Somebody to Love.” At one point, TikToker and artist Adamn Killa hops on the mic and says “If you a Filipino baddie, this is for you,” before doing his viral dance.
Among the Philippine street food offerings were pandesal sliders, lumpia-style nachos, lobster balls and various skewers.
A group of employees dance behind the counter as they serve hungry patrons who fill their trays with various Filipino street food including pandesal sliders (soft Philippine bread filled with adobo, lechon or longganisa) and Lumpia Overload (think nachos, but a bed of lumpia instead of tortilla chips), lobster balls and barbecue chicken skewers. (No alcohol is served.) Meanwhile, a few lone shoppers sprinkle into the store to get their weekly groceries as music blasts through the speakers.
First-generation Filipino American Andrea Edoria of Pasadena says “Late Night Madness” reminded her of the family parties she attended as a child in L.A. and in Manila, where her parents are from.
“Growing up as a child of immigrants, I was kind of self conscious about displaying too much of my culture,” she says between bites of spiral fried potato. She went to the Eagle Rock event with her mother last month as well. “So it kind of fed my inner child to see so many people celebrating this shared culture and experience that we each grew up [with].”
A multi-generational crowd is drawn to the dance floor. At center is Jade Cavan, 44, of Chatsworth.
Members of the Filipino American Student Assn. at Cal State Northridge perform a tinikling performance.
She adds, “I think it’s so important especially now at a time where our country is so divisive and culture is kind of being weaponized, I think it’s a beautiful reminder that we can come together and find something that unites us.”
About 10 minutes before midnight, the grocery store is still bustling with activity. A dance battle breaks out and people begin hyping up the young women. The DJ transitions into slower tracks like Beyoncé’s “Love on Top” and Mariah Carey’s “All I Want for Christmas is You.” The remaining folks sing along loudly as they walk toward the exit, smiles imprinted on their faces. Staff rush to clean up, then huddle together for group photos to memorialize the evening.
After the final song is played, employees rush to clean up the supermarket.
Patrick Bernardo, 34, of Van Nuys looks at the counter, where a man had been chopping lechon, before stepping outside.
“There’s barely anything left on that pig,” he says, pointing to it as proof that the night was a success.
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