Peloton announced Thursday that its CEO is stepping down and the company is laying off 15% of its workforce to address its debt woes.
The layoffs, which amount to about 400 employees, come as the company tries to balance spending in line with revenue.
Peloton also plans on closing retail showrooms and changing its international sales plan.
The company’s current CEO, Barry McCarthy, will become a strategic advisor to the company through the end of 2024. Current chairwoman Karen Boone and director Chris Bruzzo will take over as interim co-CEOs.
Jay Hoag, a Peloton director, will serve as new chairman of the board. The company is currently seeking a permanent CEO.
These changes are expected to reduce the company’s expenditures by more than $200 million by the end of fiscal year 2025.
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