Laid-Off Peloton Employees Offered Free Exercise Classes For One Year

Peloton announced that it would be reducing its workforce by about 20%, and as part of their severance, laid-off employees will receive a year of free fitness classes.

The news was delivered to employees in an email sent by Peloton CEO John Foley on Tuesday. Foley is set to be replaced by Barry McCarthy, the former CFO of Spotify and Netflix. Foley will stay on as a member of Peloton’s executive chair. 

“We are equipping every team member leaving Peloton with helpful tools to make them as comfortable as possible as they explore their career path post-Peloton,” Foley wrote in the email, according to the New York Post.

In addition to the Peloton membership, which averages about $40 a month, employees will also receive severance payments, extended healthcare benefits coverage, and help to find new employment. 

But fear not, employees will be able to continue taking Peloton classes with their favorite instructors. The company announced that instructors were not affected by the layoffs.

“There are folks freaking out right now wondering if they are on the [layoff] list,” a source told the outlet. “Everything has been so hush-hush.”

The Post reports that some employees learned about the layoffs from reading the news before seeing Foley’s email. They spent the rest of the day finding out if they were among the 2,800 that were let go.