The CEO of beleaguered fitness venture, Peloton, has announced he is stepping down. The news came alongside the announcement that the company is to cut 15% of its workforce worldwide. This is due to a slump in demand for fitness equipment post-Pandemic and the cost of living crisis.
CEO and president of Peloton, Barry McCarthy, released a statement on the company’s website in which he stated: “By now you’ve heard or read the news that I’m stepping down as CEO of Peloton and that we’re reducing headcount again. You’ve often heard me talk about the importance of dealing with the world as it is and not as we want it to be. This is one of those moments.”
A former executive of both Netflix and Spotify, McCarthy said that the company had to make the tough call to cut jobs in order to successfully refinance its debt. It has, however, produced a positive free cash flow for the first time in three years. He added: “Investing in hardware, software and content innovation is the lifeblood of the business, and the key to reversing the decline in revenues and restoring the company’s growth.”
McCarthy acknowledged that his tenure had been tough. In his time as CEO, he had pushed for the company to rebrand as a software-focussed venture; developed relationships with third party retailers and changed bike prices. He wrote: “I once described turnarounds as a full contact sport; intellectually challenging, emotionally draining, physically exhausting, and all consuming, the decisions never more consequential, the urgency ever present, the teamwork never more central to the mission.”
Reuters reports that Peloton “…expects connected fitness members for the full year to be between 2.96 million and 2.98 million, lower by 30,000 members from prior forecast.” Peloton is now on the search for a new CEO.
