On Thursday, Peloton CEO Barry McCarthy announced his departure from the company. As part of its restructuring efforts to cut annual expenses by over $200 million by the end of its 2025 fiscal year, Peloton is also laying off approximately 400 workers, or about 15% of its total workforce. This includes reducing its retail showroom footprint and rethinking its international approach. McCarthy replaced John Foley as Peloton CEO and president in February 2022.
Peloton, once a pandemic sensation, has faced challenges since then, including 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 of directors, and Chris Bruzzo will serve as interim co-CEOs while the board searches for a new 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. Despite these challenges