NordicTrack maker slashes 300 jobs in fifth round of layoffs
NordicTrack maker iFit Health & Fitness has laid off more than 300 workers as the Salt Lake City, Utah-based company continues to back off from changing habits in the wake of the pandemic.
The layoffs announced Monday are the fifth since the end of 2021 — reducing the number of layoffs from 2,500 to 1,300, the Salt Lake Tribune reported.
Termination notices were issued in marketing, engineering, technology and consumer products, based on LinkedIn posts by laid-off employees.
“We are taking the necessary steps to maintain business stability in the near term while bringing greater clarity and planning to our future growth strategy,” iFit CEO Kevin Duffy said in a memo to employees.
Earlier this year, iFit took aim at its top management as Peloton's rival restructured a family-owned business into one backed by institutional investors.
Duffy was named to the top job in October after billionaire iFit founder Scott Watterson resigned in February amid a battle with company investors for control of iFit, The Post exclusively reported.
Four of Watson's sons held senior positions at iFit, and several of Watson's cronies were high-ranking Mormon church officials but have since left, as have other family members, according to The Washington Post. Watson's two sons are still listed on the leadership page of the company's website.
Investors including L Catterton and Pathlight Capital poured $355 million into the company to turn it around after Watterson was ousted as CEO.
“Over the past few years, fitness companies have been impacted by changing macroeconomic trends,” Duffy said in his memo, in which he revealed that iFit's sales surged 105% during the height of the pandemic.
“As the world reopens, naturally, this demand has normalized,” he wrote. “At the same time, rising interest rates, pressure on global supply chains, the war in Ukraine, broader inflation and now mixed signals around a potential recession all present obstacles for us to continue on the path to profitability.”
An iFit spokesman declined to comment on the layoffs.
In October, Peloton cut 500 jobs in its fourth round of layoffs.
Its new CEO, Barry McCarthy, said in a memo to employees at the time, “I know many of you will be angry, frustrated and devastated by today's news, but if we are going to save Peloton, please know this is necessary. The step we are.