Peloton’s CEO Barry McCarthy has announced his departure following yet another round of layoffs, impacting approximately 15 percent of the remaining workforce, or around 400 global team members. This marks the fifth round of layoffs for the pandemic-favorite company, contradicting McCarthy’s previous statement during its Q1 2023 earnings call that layoffs were concluded and the company was on a positive trajectory.
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Peloton
In his departing message, McCarthy emphasized the necessity of further headcount reductions for Peloton to align its spending with revenue, particularly as the company seeks to refinance its debt. These layoffs are part of a 12-month restructuring initiative aimed at reducing annual expenses by over $200 million.
McCarthy, a former executive of Spotify and Netflix, departs just over two years after assuming the CEO position from founder John Foley. Interim co-CEOs Karen Boone and Chris Bruzzo will lead the company until a successor is named.
Since 2022, Peloton has undergone significant layoffs, shedding 500 jobs in October, 800 in August, 500 in July, and approximately 2,800 employees in February. Following the recent cuts, the company’s global workforce stands at around 3,000 employees, a substantial decline from its peak of 8,600 employees in 2021.
This latest development adds to Peloton’s turbulent history. While the company thrived during quarantine and invested heavily in its supply chain to address pandemic-induced shipping delays, it failed to anticipate the shift in demand once the world began reopening post-COVID-19 vaccinations.
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