Peloton proclaims new spherical of layoffs as CEO quits

Peloton’s CEO Barry McCarthy is stepping down after asserting one more spherical of layoffs, this time affecting about 15 p.c of its remaining workforce, or roughly 400 international staff members. It’s the fifth spherical of layoffs to hit the pandemic darling and comes after McCarthy stated on its Q1 2023 earnings name that the corporate was finished with layoffs and that the “ship was turning.” 

“Exhausting as the choice has been to make extra headcount cuts, Peloton merely had no different approach to deliver its spending in keeping with its income,” stated McCarthy in his outgoing message, noting that it’s a vital step as the corporate seeks to refinance its debt. The layoffs are a part of a 12-month restructuring program meant to scale back annual bills by greater than $200 million.

McCarthy — the previous Spotify and Netflix govt — is leaving simply over two years after he took the helm from founder John Foley. Board members Karen Boone and Chris Bruzzo will tackle the function of interim co-CEOs till the corporate names a alternative.

The transfer is the most recent chapter within the firm’s unstable historical past. Peloton thrived throughout quarantine and had invested lots of of tens of millions in its provide chain to handle pandemic-related delivery delays. Nonetheless, it did not foresee how demand would shift as soon as the world reopened after the covid-19 vaccines.