Close-up of a Peloton exercise bike in a gym, featuring the company’s distinctive logo, Financial District, San Francisco, California.
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Platoon announced Thursday that CEO Barry McCarthy would resign and the company would lay off 15% of its staff in an effort to cut costs by $200 million.
McCarthy, a former Spotify and Netflix executive, will become a strategic advisor to Peloton until the end of the year, while Karen Boone, the company’s president, and director Chris Bruzzo, will serve as interim co-CEOs. Jay Hoag, another Peloton director, was named Bard’s new president. Peloton is looking for a permanent CEO.
The company also announced a vast restructuring plan which will see its global workforce reduced by 15%, or around 400 employees. It plans to continue closing its showrooms and modify its international sales plan.
The restructuring aims to realign Peloton’s cost structure with the current size of its business, it said in a press release.
“This restructuring will position Peloton for sustainable, positive free cash flow, while allowing the company to continue to invest in software, hardware and content innovation, improving the support experience of its members and optimizing marketing efforts to scale the business,” the company said. said. “Once fully implemented, the Company expects the plan to result in a reduction in annual annual expenses of more than $200 million by the end of its 2025 fiscal year.”
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