Peloton’s CEO Barry McCarthy is stepping down after announcing yet another round of layoffs, this time affecting about 15 percent of its remaining workforce, or roughly 400 global team members. It’s the fifth round of layoffs to hit the pandemic darling and comes a year after McCarthy said on its Q1 2023 earnings call that the company was done with layoffs and that the “ship was turning.” Peloton is due to report Q1 2024 earnings later today.
“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,” said McCarthy in his outgoing message, noting that it’s a crucial step as the company seeks to refinance its debt. Board members Karen Boone and Chris Bruzzo will take on the role of interim Co-CEOs.
The move is the latest chapter in the company’s volatile history. Peloton thrived during quarantine and had invested hundreds of millions in its supply chain to address pandemic-related shipping delays. However, it failed to foresee how demand would shift once the world reopened after the covid-19 vaccines. In 2022, that led to the ousting of its CEO, four rounds of layoffs, and oodles of press gaffes.
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