Peloton CEO Barry McCarthy has announced his resignation, and the company is also laying off around 400 workers, or about 15% of its total workforce, as part of a comprehensive restructuring plan aimed at reducing annual expenses by more than $200 million by the end of its 2025 fiscal year. The company is also rethinking its international approach and reducing its retail showroom footprint.
Peloton has faced numerous challenges since replacing John Foley as CEO and president in February 2022. Despite initial success during lockdowns, the company has experienced product recalls, layoffs, declines in sales and stock prices, and the cancellation of plans to build its own factory in Ohio. However, Peloton’s board is actively seeking a new CEO to lead the company through its restructuring and growth efforts.
In its most recent quarter, Peloton reported $717.7 million in revenue, down 4% year over year, with a significant drop in sales of its connected-fitness products. The company posted a net loss of $167.3 million for the quarter but improved from the previous year. Karen Boone, chair of Peloton’s board, and Chris Bruzzo will serve as interim co-CEOs while the board searches for the next CEO.
Despite these challenges, Peloton remains an important player in the fitness industry and continues to innovate with new products and services. With a new leadership team in place and a renewed focus on cost savings and growth opportunities, Peloton may be able to overcome these obstacles and continue to thrive in the future.