Peloton CEO McCarthy Steps Down Amid Major Restructuring

Published 22 hours agoPTON

Peloton CEO McCarthy Steps Down Amid Major Restructuring

Peloton's CEO, Barry McCarthy, has resigned amidst substantial restructuring efforts at the company. In the wake of his departure, Karen Boone, Peloton's chairperson, and Chris Bruzzo, a director, have been named interim co-CEOs, The Guardian reported. This leadership change occurs as Peloton seeks to navigate organizational challenges and revitalize its operation.

The restructuring plan includes significant workforce reductions, with about 15% of Peloton's global employees, approximately 400 individuals, set to be laid off. Business Insider noted that this move is part of broader cost-cutting initiatives aimed at saving over $200 million annually by the end of fiscal 2025. Additional measures include closing more retail showrooms and revising the company's international strategy, reflecting Peloton's need to streamline operations.

Despite these efforts, Peloton reported a significant financial setback, with a fiscal third-quarter loss of $167.3 million and a decrease in revenue to $717.7 million, compared to $748.9 million in the same period last year. A report from Costar highlighted that these actions are part of Peloton's strategy to align its cost structure more closely with its current business scale while aiming for sustained positive free cash flow in the future.

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