Peloton’s CEO, Barry McCarthy, has announced his resignation as the company faces a decline in demand for its connected fitness equipment in the post-pandemic era. McCarthy expressed that the decision to cut 15% of the workforce was necessary to align spending with revenue and put Peloton on the right path. Despite the challenges, McCarthy commended the lead team at Peloton and expressed confidence in their abilities to steer the company in the right direction.
Peloton saw a surge in sales during the pandemic, but has struggled as the world reopened. Despite efforts to revamp the business model and partnerships with big brands, Peloton has faced continued losses and a decline in revenues. McCarthy took on the role of CEO in February 2022 and worked towards transforming Peloton into a subscription-based business. His departure marks a new chapter for Pelaton as it seeks to navigate the changing landscape of the fitness industry.
Karen Boone and Chris Bruzzo have been named interim co-CEOs following McCarthy’s departure, while Jay Hoag has been named chairperson of the board as Peloton begins its search for a new CEO. The announcement of McCarthy’s departure led to an 8% increase in Peloton’s stock before markets opened, as well as plans to scale back its retail presence due to weak demand.