Peloton CEO Barry McCarthy has announced his departure from the fitness company, along with news of laying off 400 workers, which amounts to 15% of its workforce. The company has faced challenges following its success during the pandemic, including recalling products, workforce reductions, and declining sales and stock performance.
Karen Boone and Chris Bruzzo will serve as interim co-CEOs, as the board begins the search for a new CEO to lead Peloton. Despite facing challenges, the company reported $717.7 million in revenues for the most recent quarter, with a 14% decline in sales of its connected-fitness products and a net loss of $167.3 million.
Peloton plans to reduce annual expenses by over $200 million by the end of fiscal 2025 through comprehensive restructuring efforts. This initiative involves cutting its retail showroom footprint, reevaluating its international strategy, and making other changes to streamline operations.
Barry McCarthy took over as Peloton CEO and president in February 2022. The company, once a major player in the fitness industry, experienced significant growth during the pandemic but has since encountered setbacks such as product recalls, layoffs, and financial struggles. Plans to establish a factory in Ohio were also scrapped.
