New York, USA – Peloton’s CEO Barry McCarthy has announced his departure after implementing another round of layoffs, affecting approximately 15 percent of the company’s workforce, or around 400 employees globally. This decision marks the fifth round of layoffs for the fitness company amid ongoing challenges. The recent layoffs follow McCarthy’s earlier statements during the Q1 2023 earnings call, where he expressed confidence in the company’s turnaround.
McCarthy highlighted the necessity of the additional headcount cuts to align Peloton’s spending with its revenue and pursue debt refinancing. The layoffs are part of a broader 12-month restructuring program aimed at reducing annual expenses by over $200 million. McCarthy, a former executive at Spotify and Netflix, will step down just over two years after assuming the CEO position from founder John Foley. Board members Karen Boone and Chris Bruzzo will temporarily serve as interim co-CEOs until a replacement is named.
The company’s decision to downsize comes amidst a tumultuous period for Peloton, which saw significant growth during the pandemic but faced challenges as the world reopened post-vaccination. Peloton had invested heavily in its supply chain to address pandemic-related delays but struggled to anticipate changing consumer demand in the post-pandemic landscape.
Critics and industry analysts have been closely following Peloton’s trajectory, with many questioning the company’s ability to adapt to shifting market dynamics. The departure of McCarthy, along with the ongoing layoffs, raises concerns about Peloton’s future strategic direction and operational stability. Investors and stakeholders will be monitoring the company’s next steps closely as it navigates these turbulent waters.