Peloton, renowned for its high-end bicycles and fitness equipment, has announced a workforce reduction affecting approximately 15% of its employees.
This move is part of a broader restructuring aimed at realigning the company’s expenses with its current business scale, targeting a reduction of over $200 million in annual expenses by fiscal year 2025.
CEO Barry McCarthy is stepping down as part of this effort, with plans for interim co-CEOs to lead the company.
Peloton’s strategic shift also includes downsizing its retail showroom presence and revising its international market strategy.
The company’s recent challenges follow a period of pandemic-driven success, with a subsequent decline in revenue.
Peloton reported significant losses over recent fiscal periods, totaling $1.26 billion in the last fiscal year and $167.3 million in the third quarter.
These layoffs mark the latest in a series of job reductions by Peloton, following previous cuts in 2022.
