Peloton cutting 400 jobs worldwide, CEO stepping down

Peloton known for its luxury bicycles and exercise equipment announced Thursday that around 15% of its staff will be getting laid off.

Peloton known for its luxury stationary bicycles and exercise equipment announced Thursday that it will lay off approximately 400 jobs or about 15% of its staff.

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The company is planning to restructure to “align the company’s cost structure with the current size of its business,” according to USA Today. Peloton is hoping to reduce its annual run-rate expenses by over $200 million by the end of the 2025 fiscal year, according to the company.

This is not the first time Pelton has slashed its workforce. The company cut 800 jobs in August 2022 and another 500 jobs in October 2022, according to the AP,

Peloton announced its CEO Barry McCarthy would be stepping down in addition to the layoffs because it “simply had no other way to bring its spending in line with its revenue,” according to CNBC.

McCarthy will become a strategic advisor to the company through the end of the year, CNBC reported. Peloton’s Chairperson Karen Boone and Director Chris Bruzzo are expected to serve as interim co-CEOs.

“On behalf of the Board, I want to thank Barry for his contributions to Peloton. Barry joined Peloton during an incredibly challenging time for the business. During his tenure, he laid the foundation for scalable growth by steadily rearchitecting the cost structure of the business to create stability and to reach the important milestone of achieving positive free cash flow,” said Boone, according to Peloton’s news release. “With a strong leadership team in place and the Company now on solid footing, the Board has decided that now is an appropriate time to search for the next CEO of Peloton.”

The company will reduce its retail showroom footprint and change its international market plans, USA Today reported.

Peloton’s company was highly successful during the COVID-19 pandemic as gyms were closed or restricted and more people worked out at home. Since then, there has been a decline and its revenue has dropped, USA Today reported.

In the last fiscal year which ended last June, Peloton lost around $1.26 billion with $350 million lost between July and December, according to The Associated Press.

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