PTON
Peloton (NASDAQ: PTON) has announced the resignation of CEO Barry McCarthy, alongside a significant workforce reduction of 15%. McCarthy, who took the reins from founder John Foley in February 2022, will remain with the company as a strategic advisor until the end of the year. In the interim, Karen Boone and Chris Bruzzo, current board members, will serve as co-CEOs.
The restructuring includes a workforce cut of approximately 400 employees, part of a broader initiative to reduce annual expenses by $200 million. This adjustment comes as Peloton seeks to realign its cost structure with its current business size, which includes closing some retail locations and revamping its international sales strategy.
Under McCarthy’s leadership, Peloton shifted focus towards its digital platforms, aiming to reach a broader audience beyond its high-end equipment owners. This strategic pivot was part of his broader efforts to stabilize the company’s finances and return to growth.
The search for a new permanent CEO is underway, with the board expressing confidence in the leadership transition plan. Boone and Bruzzo have pledged to ensure the company continues its operations smoothly during this period.
