In a previous email I talked about the laundry list of mistakes Peloton has made recently and the fallout they might experience because of it. Well, turns out big changes were coming because the CEO has stepped down.
My last message was about the product pricing mistakes I feel they made. Those changes have undoubtedly had an impact on the reversal of their growth. So much so that they are expected to lay off 20% of their workforce or 2,800 jobs (awful).
I want to use this opportunity to tell you that your product doesn’t need a ridiculous growth trajectory to be successful. In many cases, trying to sustain this kind of growth is really harmful.
Now 2,800 people at Peloton are out of a job and the CEO had no choice but to step down. Their valuation has fallen by more than 80%. Last year it rose to $50B and it currently sits at about $9.8B.
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These stories are all too common in the product world. Unlimited, aggressive growth is not sustainable.
Instead, build your company with a moderate growth rate. One that is sustainable.
Remember this is a marathon, not a sprint.