Peloton mentioned on Thursday that its chief government, Barry McCarthy, was stepping down and it might lay off extra staff, because it continued to battle within the health market.
The connected-fitness firm introduced disappointing quarterly earnings on Thursday, with income down 4 % from final 12 months. The corporate, which has not turned a revenue since December 2020, can also be seeking to refinance greater than $1 billion in debt.
Peloton had a spectacular rise in the beginning of the pandemic, when gyms and health facilities closed and shoppers have been hungry for at-home exercise choices. However after gyms reopened, Peloton started to face stiffer competitors from firms like Bowflex and Lululemon.
It’s lowering its head rely by 15 %, or 400 staff, in an effort to chop its prices this 12 months by $200 million. Peloton has had a number of different rounds of job cuts up to now couple of years, most just lately in October 2022, when it laid off about 12 % of staff, or about 500 folks.
“Onerous as the choice has been to make further head rely cuts, Peloton merely had no different method to convey its spending consistent with its income,” Mr. McCarthy mentioned in a press release.
Traders appeared optimistic concerning the information; Peloton’s inventory worth rose about 9 % in premarket buying and selling.
The corporate mentioned it was seeking to cut back its retail footprint and as a substitute spend money on “software program, {hardware} and content material portfolio and in enhancements” for paying subscribers.
Mr. McCarthy, a former Spotify and Netflix government, joined Peloton in February 2022, taking up from the corporate’s founder, John Foley. Two board members, Karen Boone and Chris Bruzzo, will function interim co-chief executives.
