May 2, 2024 - Business

Peloton CEO Barry McCarthy steps down, company cuts 15% of staff

The outside of a Peloton physical location

Photo: Michael Nagle/Bloomberg via Getty Images

Peloton Interactive said CEO Barry McCarthy will step down from his role as the connected fitness company works to turn itself around.

Why it matters: The struggling company, whose shares are down around 90% from their 2020 peak, is searching for a replacement and slashing 15% of its workforce.

Context: Peloton's first CEO after co-founder Jon Foley stepped down from the role, McCarthy joined in 2022 to rejuvenate the business following previous posts at Spotify and Netflix.

The latest: The company named board chair Karen Boone and director Chris Bruzzo as interim co-CEOs as it searches for a new permanent head.

  • McCarthy will remain a strategic advisor through the year's end.

Zoom in: Peloton is cutting about 400 workers and plans to reduce its retail footprint.

  • It aims to cut expenses by more than $200 million by end of next year.

Zoom out: After seeing a pandemic boost, the company struggled to grow "at scale" and increase revenues as consumers return to the gym and other fitness classes in-person instead of doing workouts at home.

Editor's note: This story has been amended to add information about when McCarthy joined the company.

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