Is the mass growth that Peloton experienced during the height of the pandemic riding off into the sunset? Maybe so… The company saw a surge of more than 400% in 2020 amid the COVID-19 lockdowns, but that quickly changed as businesses, including gyms started opening back up.

The co-founder of Peloton, John Foley, will be stepping down as the company cuts almost 3,000 jobs.  “Barry McCarthy, who served as CFO at Spotify as well as at Netflix, will take over as CEO.” An investor, Blackwells Capital, has asked that the company be sold, despite the change in leadership and reduction of personnel.  There were reports that Amazon or Nike may buy the company and some key players continue to push for the sale of the company.

Peloton will look to reduce its capital expenditure this year by about $150 million. It will decrease the development of the Peloton Output Park in Ohio as well as reduce its “owned and operated warehousing and delivery locations” to then ramp up third-party relationships.

When companies invest too much too quickly and the demand trajectory also takes a quick turn, reduction of resources including human become inevitable. There is a fine line a company must walk to sustain business growth and Peloton is quickly having to pivot to absorb this change.

Having a short and long-term plan to allow the business to flex when demand is high and to retain when it is low is as important as ensuring your supply chain runs smoothly.  The ability for companies to plan and create contingency plans is critical.