Peloton announces new round of layoffs as CEO quits

Another acheronian time for Peloton. | Illustration by Alex Castro / The Verge

Peloton’s CEO Barry McCarthy is stepping down aft announcing yet different circular of layoffs, this clip affecting astir 15 percent of its remaining workforce, oregon astir 400 planetary squad members. It’s the 5th circular of layoffs to deed the pandemic darling and comes a twelvemonth aft McCarthy said connected its Q1 2023 net call that the institution was done with layoffs and that the “ship was turning.” Peloton is owed to study Q1 2024 net aboriginal today.

“Hard arsenic the determination has been to marque further headcount cuts, Peloton simply had nary different mode to bring its spending successful enactment with its revenue,” said McCarthy successful his outgoing message, noting that it’s a important measurement arsenic the institution seeks to refinance its debt.

Back successful 2022 Peloton shed 500 jobs successful October, 800 successful August, 500 successful July, and around 2,800 employees successful February. The company’s workforce present sits astatine astir 3,400 employees globally aft today’s cuts. That’s a large driblet from Peloton’s highest of 8,600 employees successful 2021.

The determination is the latest section successful the company’s volatile history. Peloton thrived during quarantine and had invested hundreds of millions successful its proviso concatenation to code pandemic-related shipping delays. However, it failed to foresee however request would displacement erstwhile the satellite reopened aft the covid-19 vaccines. In 2022, that led to the ouster of its CEO, 4 rounds of layoffs, and oodles of property gaffes.