Peloton is offering stock and cash incentives to motivate the employees to stay.
This will enable the eligible employees in accessing their equity grants earlier. The hourly workers will be eligible for a one-time bonus instead of an equity grant. Peloton boosted incentives for its workers with one-time cash bonuses and by making changes to its stock compensation plan as it strives to retain employees and empower its struggling business.
Barry McCarthy, the newly appointed CEO was working to boost the morale at Peloton as a turnaround push. McCarthy replaced the founder John Foley to became CEO in February. Now, investors are curious about McCarthy can grow sales to win over customers as rising inflation compresses budgets and a highly competitive labor market makes it harder for companies in retaining the employees.
On Wednesday in an interview, Shari Eaton, Peloton’s chief people officer, said “the company is taking the actions so employees can benefit as the company works on its turnaround efforts. The extraordinary circumstances that we find ourselves in now really give us that chance to pause and look at what it is that we can do to ensure future success,”
To control the situation, Peloton announced it was slashing roughly $800 million in annual costs through approximately 20% of its corporate positions.