Peloton’s CEO Barry McCarthy is stepping down after saying yet one more spherical of layoffs, this time affecting about 15 % of its remaining workforce, or roughly 400 international staff members. It’s the fifth spherical of layoffs to hit the pandemic darling and comes after McCarthy mentioned on its Q1 2023 earnings name that the corporate was carried out with layoffs and that the “ship was turning.”
“Hard as the decision has been to make additional headcount cuts, Peloton simply had no other way to bring its spending in line with its revenue,” mentioned McCarthy in his outgoing message, noting that it’s an important step as the corporate seeks to refinance its debt. The layoffs are a part of a 12-month restructuring program meant to cut back annual bills by greater than $200 million.
Board members Karen Boone and Chris Bruzzo will tackle the position of interim co-CEOs.
The transfer is the newest chapter within the firm’s risky historical past. Peloton thrived throughout quarantine and had invested lots of of thousands and thousands in its provide chain to deal with pandemic-related transport delays. Nonetheless, it did not foresee how demand would shift as soon as the world reopened after the covid-19 vaccines.