Peloton to lay off 112 on Long Island

Peloton Interactive Inc., whose stationary bicycles and online classes became emblematic of lifestyle changes during the early stages of the COVID-19 pandemic, plans to lay off 112 Long Island employees as part of a broad restructuring.

In a government filing, the Manhattan company announced plans to close its Port Washington site on Harbor Road, cutting all 50 employees, and trimming 62 of the 93 workers at its Farmingdale facility, which will remain open.

An email to Peloton's media relations unit was not immediately returned. Employees at stores in Manhasset and the Roosevelt Field Mall referred questions to managers or corporate spokespeople.

The maker of high-end exercise equipment earlier this month disclosed plans to lay off 2,800 employees worldwide as part of a restructuring that is forecast to save at least $800 million per year.

A Westchester County facility in Mount Vernon also was slated for closure, resulting in the dismissal of all 75 workers.

The layoffs in Port Washington, Farmingdale and Mount Vernon are scheduled for May 9, according to the notices filed under the Worker Adjustment and Retraining Notification Act.

Peloton, which had 8,662 employees worldwide as of June 30, 2021, earlier this month also named Barry McCarthy, the former chief financial officer of Spotify and Netflix, as its new chief executive. McCarthy replaced co-founder John Foley, who became executive chair.

As part of the restructuring plan, Peloton, founded in 2012, said that it plans to outsource some functions to third-party warehouse and delivery services while shrinking its owned and operated facilities and services.

Rumors earlier this month of a potential acquisition by Nike, Apple or Amazon buoyed the stock, but McCarthy, in an interview with The Financial Times, quashed the speculation, saying such a deal was unlikely "in the foreseeable future."

Shares in Peloton have fallen about 70% in the past six months. They closed Tuesday at $33.25, up 1.3%. .

Peloton's revenue soared from $915 million in fiscal 2019 to $4 billion in the fiscal year ended June 30, 2021 as homebound Americans found themselves seeking alternatives to the neighborhood gym during the height of the pandemic.

The price of the flagship Peloton stationary bicycle, which includes a touch screen, has come down to about $1,500 from more than $2,000, but access to video classes requires a separate subscription.

Peloton's reputation suffered following a rash of accidents involving its treadmill equipment. A recall notice for two models last May from the Consumer Product Safety Commission reported, "Peloton has received 72 reports of adult users, children, pets and/or objects being pulled under the rear of the treadmill, including 29 reports of injuries to children such as second- and third-degree abrasions, broken bones, and lacerations." One child died.

By Ken Schachter

kenneth.schachter@newsday.comkschach

Ken Schachter covers corporate news, including technology and aerospace, and other business topics for Newsday. He has also worked at The Miami Herald and The Jerusalem Post.