Peloton Layoffs Could Mean Golden Opportunity For Tech Companies, Startups
NEW YORK (CBSNewYork) - One of the most successful at-home fitness companies is carrying out a cost-cutting corporate overhaul, removing its CEO and firing nearly 3,000 employees.
Peloton made the announcement Wednesday, and many of the impacted employees are already being inundated with job offers.
CBS2's Jessica Moore explores this silver lining to an unexpected round of layoffs.
During the pandemic, Peloton saw profits soar with more people working, and working out, from home. But as demand plunged and competition increased, the poster child for pandemic fitness announced it is laying off 2,800 employees, which represents a staggering 20% of its workforce.
"Seeing their stock price drop and then being removed from NASDAQ, then with the layoffs, your heart sinks for these people," said Andy Krystowiak of Swarming Technology.
Now, major companies like Google, Amazon, Facebook and Spotify are trying to turn Peloton's loss into their gain, and they're running into competition from dozens of startups looking for top talent.
"If anyone has Peloton on their resume, they're almost like an automatic in," said Alex Plonsker of SplitPass. "Having people who have been in the scene and know everybody - it's super helpful to have that context when you hire someone and they can come in on day one and start making an impact."
Hours after Peloton's announcement, the company's director of social media launched a spreadsheet on LinkedIn showing all available jobs across myriad corporations, hoping to connect her former colleagues with open positions. Hundreds of companies responded, like e-commerce agency Swarming Technology.
"As people who are also running a business, did you see an opportunity?" Moore asked.
"I mean, we would love as a small business to hire at least one of those folks and say, hey, we know you just worked for Peloton, but let us tell you why even though we only have 15 folks, we have the same core values, and you can build here what you built there," Swarming Technology's Andy and Germaine Krystowiak told Moore.
"What does that say about how high quality these workers are?" Moore asked.
"They built an amazing company over a short period of time, especially in marketing. They created a product and got people addicted to their machines. There's a tremendous demand for those kind of people," said Jordan Goodman of MoneyAnswers.com.
Peloton tells CBS2 the company is offering cash compensation, healthcare benefits and career services as part of its exit packages.
Swarming Technology has already set up informational interviews with two former Peloton employees, and hopes to increase that number to at least 10, with the goal of hiring as many as possible.