Peloton announces a new round of layoffs with the resignation of its CEO

Peloton CEO Barry McCarthy will then step down Announcing another round of layoffs, this time affecting about 15 percent of its remaining workforce, or approximately 400 global team members. It's the fifth round of layoffs to hit the pandemic, baby, and comes after McCarthy said on his site Q1 2023 earnings call That the company had finished laying off workers and that “the ship was turning.”

“As difficult as the decision to make additional headcount reductions was, Peloton simply had no other way to bring its spending in line with its revenue.” McCarthy said in his released letterNoting that it is a crucial step as the company seeks to refinance its debts. The layoffs are part of a 12-month restructuring program aimed at reducing annual expenses by more than $200 million.

McCarthy – the former Spotify and Netflix CEO – departs just over two years after taking over from founder John Foley. Board members Karen Boone and Chris Brozo will serve as interim co-CEOs until the company appoints a replacement.

The move is the latest chapter in the company's checkered history. Peloton has thrived during quarantine and invested hundreds of millions in its supply chain to address pandemic-related shipping delays. However, it failed to forecast how demand would shift once the world reopened after COVID-19 vaccinations.

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