Peloton CEO Barry McCarthy is stepping down over a 15% reduction in the company’s global workforce due to decreased demand for its connected fitness equipment in the post-pandemic era. McCarthy, a former executive at Netflix and Spotify, took over in 2022 and initiated cost-cutting measures, including a shift towards software-focused services leveraging exclusive content to drive subscriber growth.
Despite these efforts, Peloton’s equipment sales have faltered due to reduced consumer spending amid inflation and rising borrowing costs. The company now anticipates fewer connected fitness members for the year, prompting a reassessment of its strategy.
In the interim, Peloton’s chairperson Karen Boone and director Chris Bruzzo will serve as co-CEOs, with director Jay Hoag assuming the role of board chairperson. The board has initiated a search for the next CEO amidst challenges in navigating shifting fitness trends and market dynamics.
Source: Reuters