Peloton announces new round of layoffs as CEO quits

Peloton’s CEO Barry McCarthy is stepping down aft announcing yet different information of layoffs, this clip affecting astir 15 percent of its remaining workforce, aliases astir 400 world squad members. It’s nan 5th information of layoffs to deed nan pandemic darling and comes a twelvemonth aft McCarthy said connected its Q1 2023 net call that nan institution was done pinch layoffs and that nan “ship was turning.” 

“Hard arsenic nan determination has been to make further headcount cuts, Peloton simply had nary different measurement to bring its spending successful statement pinch its revenue,” said McCarthy successful his outgoing message, noting that it’s a important measurement arsenic nan institution seeks to refinance its debt. The layoffs are portion of a 12-month restructuring programme meant to trim yearly expenses by much than $200 million.

Board members Karen Boone and Chris Bruzzo will return connected nan domiciled of interim co-CEOs.

Back successful 2022, Peloton shed 500 jobs successful October, 800 successful August, 500 successful July, and around 2,800 labor successful February. The company’s workforce now sits astatine conscionable complete 3,000 labor globally aft today’s cuts. That’s a large driblet from Peloton’s highest of 8,600 labor successful 2021.

The move is nan latest section successful nan company’s volatile history. Peloton thrived during quarantine and had invested hundreds of millions successful its proviso concatenation to reside pandemic-related shipping delays. However, it grounded to foresee really request would displacement erstwhile nan world reopened aft nan covid-19 vaccines.