Peloton CEO Barry McCarthy is resigning after announcing another round of layoffs, this time affecting about 15% of its remaining workforce, or about 400 global team members. It’s the fifth round of layoffs to hit the pandemic, honey, and it comes after McCarthy said during its first-quarter 2023 earnings call that the company was done with layoffs and that “the ship was turning.” .
“As difficult as the decision to make additional workforce reductions was, Peloton simply had no other way to align its expenses with its revenues,” McCarthy said in his outgoing message, noting that he This is a crucial step as the company seeks to refinance its operations. debt. The layoffs are part of a 12-month restructuring program aimed at reducing annual expenses by more than $200 million.
McCarthy – the former Spotify and Netflix executive – is leaving just over two years after taking over from founder John Foley. Board members Karen Boone and Chris Bruzzo will serve as interim co-CEOs until the company names a replacement.
The move marks the latest chapter in the company’s volatile history. Peloton thrived during quarantine and invested hundreds of millions in its supply chain to address pandemic-related shipping delays. However, he did not predict how demand would change once the world reopens following Covid-19 vaccines.
News Source : www.theverge.com
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