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 400 workers, or 15% of its total workforce.
• After reaching new highs during the pandemic, the company has recalled products, laid off workers, and seen sales and its stock tank.

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

It also said that it was laying off 400 workers, or 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 fiscal 2025. 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 lockdown. But since then, the company has recalled products, laid off thousands of workers, and seen sales and its stock tank. It also scrapped plans to build its own factory in Ohio.

Karen Boone, the chair of the company's board, and Chris Bruzzo, one of Peloton's directors, 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 revenues for the most recent quarter, down 4% year-over-year, with a 14% drop in sales of its connected-fitness products. It posted a net loss for the quarter of $167.3 million, down from $275.9 million for the same quarter in 2023.