Peloton CEO steps down in the wake of mass layoffs and company restructuring

Peloton CEO Barry McCarthy has resigned as the company plans to lay off 15% of its global workforce, or approximately 400 employees, according to reports from The Wall Street Journal and NPR.

Over the last two years, the high end fitness company’s stock value has plummeted more than 90%, following a pandemic-era boom. Peloton has also coped with multiple recalls of its products, reportedly owes millions of dollars in debt.

Under McCarthy’s leadership, the company executed mass layoffs in order to cut costs, and tried to reorient the company towards general wellness and a subscription based model. 

However, its subscription service failed to garner significant traction, and the company's expensive stationary bikes and treadmills have seen a major drop in sales as fitness enthusiasts have largely returned to gyms following COVID era restrictions.

As part of its new restructuring plan, Peloton hopes to cut expenses by more than $200 million by the end of its 2025 fiscal year. The company has reportedly begun the search for a new leader, and plans to close its physical showrooms while working to rebuild its business model.