Peloton CEO steps down amid more layoffs

Peloton is undergoing another major restructuring, laying off 400 employees, which is 15% of its workforce, and initiating another search for a new CEO as Barry McCarthy steps down. This comes amid continuing financial struggles and efforts to redefine the company's business model beyond high-end fitness equipment.

The company has repeatedly tried to adjust its strategy, focusing on corporate wellness and partnerships, yet facing a significant decline in stock value and sales post-pandemic. Safety issues and recalls have further complicated its recovery. Peloton now faces the challenge of refinancing over $1 billion in debt while aiming to reduce expenses significantly by the end of fiscal 2025.