PTON - Peloton CEO Barry McCarthy Resigns As Company Decides To Downsize By 15%: 'No Other Way To Bring Its Spending In Line With Its Revenue' | Benzinga
Barry McCarthy, CEO of Peloton Interactive, Inc (NASDAQ:PTON), has stepped down from his position. The company also announced a 15% cut in its global workforce, attributing the decision to a slump in demand for its fitness products in the post-pandemic era.
What Happened: McCarthy’s resignation on Thursday comes at a time when the New York-based fitness company is grappling with significant challenges, Reuters reported. The company also plans to scale back its retail footprint.
In a note shared with employees of Peloton, McCarthy said, “Hard as the decision has been to make additional headcount cuts, Peloton simply had no other way to bring its spending in line with its revenue. The company had to do that in order to generate sustainable positive FCF [free cash flow].”
McCarthy, who previously held executive roles at Netflix and Spotify, assumed the CEO position from founder John Foley in 2022. Despite implementing several cost-cutting measures and repositioning Peloton as a software-centric company, demand for Peloton’s products has been lackluster, primarily ...