Peloton announced a new round of layoffs as the CEO resigned

Peloton's CEO Barry McCarthy is stepping down Announcing another round of layoffs, this method affects about 15 percent of its remaining workforce, or about 400 global team members. It's the fifth round of layoffs to hit Pandemic Love and it comes after McCarthy said Q1 2023 earnings call The company ended up with layoffs and « turning the ship around. »

« As the decision to cut additional numbers is a difficult one, Peloton has no choice but to bring costs in line with its revenues. » McCarthy said in his outgoing message, an important step as the company seeks to refinance its debt. The layoffs are part of a 12-month restructuring plan that will reduce annual costs by more than $200 million.

McCarthy – a former Spotify and Netflix executive – is leaving after two years at the helm from founder John Foley. Board members Karen Boone and Chris Bruzzo will assume the role of interim co-CEOs until the company names a replacement.

The move is the latest chapter in the company's volatile history. Peloton thrived during the quarantine and invested hundreds of millions in its supply chain to address pandemic-related shipping delays. However, it is impossible to know in advance how demand will change once the world reopens after Covid-19 vaccines.