Peloton’s CEO Barry McCarthy is stepping down after announcing yet another round of layoffs, this time affecting about 15 percent of its remaining workforce, or roughly 400 global team members. It’s the fifth round of layoffs to hit the pandemic darling and comes after McCarthy said on its Q1 2023 earnings call that the company was done with layoffs and that the “ship was turning.”
“Hard as the decision has been to make additional headcount cuts, Peloton simply had no other way to bring its spending in line with its revenue,” said McCarthy in his outgoing message, noting that it’s a crucial step as the company seeks to refinance its debt. The layoffs are part of a 12-month restructuring program meant to reduce annual expenses by more than $200 million.
McCarthy — the former Spotify and Netflix executive — is leaving just over two years after he took the helm from founder John Foley. Board members Karen Boone and Chris Bruzzo will take on the role of interim co-CEOs until the company names a replacement.
Back in 2022, Peloton shed 500 jobs in October, 800 in August, 500 in July, and around 2,800 employees in February. The company’s workforce now sits at around 3,000 employees globally after today’s cuts. That’s a big drop from Peloton’s peak of 8,600 employees in 2021.
The move is the latest chapter in the company’s volatile history. Peloton thrived during quarantine and had invested hundreds of millions in its supply chain to address pandemic-related shipping delays. However, it failed to foresee how demand would shift once the world reopened after the covid-19 vaccines.
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