Peloton CEO Barry McCarthy Resigns, Company Announces Restructuring Plan and Layoffs

Peloton’s CEO Barry McCarthy is stepping down, and the fitness company announced it will lay off around 400 workers, or about 15% of its total workforce. The move comes as part of a comprehensive restructuring plan aimed at reducing annual expenses by more than $200 million by the end of the 2025 fiscal year. As part of this effort, Peloton plans to reduce its retail showroom footprint and rethink its international approach. McCarthy took over as CEO and president in February 2022, replacing John Foley.

Peloton experienced significant growth during lockdowns but has faced challenges since then, including product recalls, layoffs, declines in sales and stock prices, and the cancellation of plans to build its own factory in Ohio. The company’s board chair Karen Boone and director Chris Bruzzo will serve as interim co-CEOs while the board searches for a new CEO to lead the company through its restructuring and growth efforts. In its most recent quarter, Peloton reported $717.7 million in revenue, down 4% year over year, with a 14% drop in sales of its connected-fitness products. The company posted a net loss of $167.3 million for the quarter, which was an improvement from the previous year.