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Peloton's CEO steps down as the company cuts 15% of staff

Grace Dean   

Peloton's CEO steps down as the company cuts 15% of staff
  • Peloton CEO Barry McCarthy is stepping down, the fitness company announced on Thursday.
  • It also said that it was laying off around 400 workers — about 15% of its total workforce.

Peloton CEO Barry McCarthy is stepping down, the fitness company announced on Thursday.

It also said that it was laying off around 400 workers — about 15% of its total workforce.

Peloton said that the layoffs were part of comprehensive restructuring efforts to reduce annual expenses by more than $200 million by the end of its 2025 fiscal year. This also includes reducing its retail showroom footprint and rethinking the company's international approach.

McCarthy replaced John Foley as Peloton CEO and president in February 2022.

Peloton, one of the darlings of the pandemic, boomed in business during waves of lockdowns. But since then, the company has recalled products, laid off thousands of workers, and seen its sales and stock price tank. It also scrapped plans to build its own factory in Ohio.

Karen Boone, the chair of Peloton's board, and Chris Bruzzo, a company director, will serve as interim co-CEOs. Peloton said that its board had already started the search for its next CEO.

Peloton reported $717.7 million in revenue for its most recent quarter, down 4% year over year, with a 14% drop in sales of its connected-fitness products. It posted a net loss of $167.3 million for the quarter, down from $275.9 million for the same quarter in 2023.


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