Peloton CEO Barry McCarthy has stepped down and the fitness company has announced that it will lay off around 400 workers, about 15% of its total workforce. The company is undertaking comprehensive restructuring efforts to reduce annual expenses by more than $200 million by the end of its 2025 fiscal year.
This 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, once a pandemic darling, experienced significant growth during waves of lockdowns. However, the company has faced challenges since then, such as product recalls, layoffs, declines in sales and stock prices, and the cancellation of plans to build its own factory in Ohio. Karen Boone, the chair of Pelaton’s board, and Chris Bruzzo, a company director, will serve as interim co-CEOs while the board searches for the next CEO.
In its most recent quarter, Peloton reported $717.7 million in revenue, down 4% year over year, with a 14% drop in sales of its connected-fitness products. The company posted a net loss of $167.3 million for the quarter, which was an improvement from the previous year. Peloton’s board is actively seeking a new CEO to lead the company through its restructuring and growth efforts.