We have received reports that Peloton is transitioning their sales team away from commission-based compensation plans. Peloton notified impacted employees of the change at the end of last week.
Both retail showroom employees, as well as Peloton’s inside sales team – in other words, employees with whom customers would speak to if they called or chatted in order to make a purchase – are affected. Employees are receiving an increase in their base pay to offset some of the loss in commission pay.
There will still be sales goals in place for the employees, even with the removal of the commission component of the sales team employees.
When we share news about ongoing sales, we typically include a reminder that placing an order for a hardware device through your local showroom will earn a Peloton employee a commission – however, that will no longer be the case moving forward.
Each employee is affected differently depending on the frequency and strength of their sales – inevitably some will be impacted more significantly than others.
Peloton has previously altered the pay structure of their sales employees. Most notably, in late 2021 Peloton drastically reduced the pay of their retail employees, resulting in a pay cut of 30%-60% in some cases.
As a reminder, Peloton is also in the process of shutting down showrooms across the United States and Canada. This measure was announced at the end of 2022. 16 showrooms were closed at the beginning of 2023, and more have closed since then. This is part of Peloton’s overall restructuring and streamlining effort that has been ongoing since Barry McCarthy became CEO in February of 2022.
