Business

Peloton Trims 15% of Workforce, CEO McCarthy Resigns

May 2, 2024 1 min read

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Peloton Interactive, Inc. is undergoing significant changes, including the departure of CEO Barry McCarthy, who will remain a strategic advisor through year's end. In his place, Karen Boone and Chris Bruzzo will take over as interim co-CEOs, with Jay Hoag stepping in as the new chairperson of the board. The company is facing a restructuring plan aimed at reducing costs by $200 million by the end of its 2025 fiscal year, which includes laying off approximately 400 employees, representing 15% of its workforce. These measures are in response to a decrease in demand for Peloton's connected fitness equipment and are intended to realign the company's cost structure with the current scale of its business.

The restructuring also entails a scale-back of its retail presence and a redesign of its international sales strategy, as well as continued investments in software, hardware, and content innovation, with a focus on improving the member support experience and optimizing marketing efforts. These steps are being taken to set Peloton on a path toward sustained, positive free cash flow. The company's financial results for Q3 Fiscal Year 2024 will be announced on May 2, 2024, with a live webcast available on Peloton's website. It's important to note that the company's statements about future plans and projections are forward-looking and subject to various risks, uncertainties, and assumptions.

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