Peloton CEO Barry McCarthy to step down, company to lay off 15% of staff

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Peloton announced Thursday that CEO Barry McCarthy will be stepping down just over two years after he took over from founder John Foley.

The former Netflix and Spotify executive joined the company in Feb. 2022 and has worked to turn the company around, cut costs and return it to growth.

The company also announced a broad restructuring plan that will see its global headcount cut by 15%, or about 400 employees. It plans to continue to close retail showrooms and make changes to its international sales plan. "This restructuring will position Peloton for sustained, positive free cash flow, while enabling the company to continue to invest in software, hardware and content innovation, improvements to its member support experience, and optimizations to marketing efforts to scale the business," the company said. "Upon full implementation, the company expects the plan to result in reduced annual run-rate expenses by more than $200 million by the end of its 2025 fiscal year.

"On behalf of the Board, I want to thank Barry for his contributions to Peloton. Barry joined Peloton during an incredibly challenging time for the business. During his tenure, he laid the foundation for scalable growth by steadily rearchitecting the cost structure of the business to create stability and to reach the important milestone of achieving positive free cash flow," Boone said in a news release.

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