Peloton cuts 400 jobs as CEO steps down

There are major changes ahead for Peloton as the fitness company struggles to find a business model post-pandemic.

What you probably already know: Peloton experienced enormous growth during the pandemic but has since had trouble retaining members. CEO Barry McCarthy shifted the company’s focus from stationary bike sales to the company’s app, which offers classes in a variety of formats, in an attempt to continue growing after we all went back to the gym.

Why? McCarthy’s plan didn’t pan out and now he’s out. Board Chairman Karen Boone and director Chris Bruzzo will serve as interim co-CEOs while the board seeks a replacement. The share price is down more than 50% so far this year.

What it means: Peloton is making cuts, including 15% of its workforce and a continuation of brick and mortar store closures in an effort to reduce its run-rate by more than $200 million by the end of 2025. In 2022, the company cut 780 jobs and started closing stores.

What happens next? If your local Peloton showroom hasn’t already closed, it’s likely on the chopping block. There are just over 100 stores left, according to Peloton’s website, with quite a few in Germany and the U.K.