Peloton to lay off 400 employees as CEO Barry McCarthy departs

Peloton announced it is laying off 400 employees, 15% of its workforce, as part of a cost-cutting strategy. CEO Barry McCarthy is stepping down after two years. The company, which saw a peak market cap of $50 billion in early 2021, now struggles with a valuation just above $1 billion.

As it searches for McCarthy's successor, Peloton aims to reduce expenses by over $200 million by fiscal year 2025, cutting its retail presence and focusing on international growth. These changes follow a disappointing Q3 2024 report with significant revenue loss and a drop in app subscriptions.