The fitness company Peloton is facing setbacks, including recalling products, reducing its workforce, and declining sales and stock performance. In order to reduce annual expenses by over $200 million by the end of fiscal 2025, the company has announced a restructuring plan that involves cutting its retail showroom footprint, reevaluating its international strategy, and making other changes to streamline operations.
Peloton CEO Barry McCarthy took over as CEO and president in February 2022, but the company has since encountered setbacks. Plans to establish a factory in Ohio were also scrapped. Despite these challenges, the company reported $717.7 million in revenues for the most recent quarter, with a 14% decline in sales of its connected-fitness products and a net loss of $167.3 million.
As Peloton searches for a new CEO to lead the company through its challenges, interim co-CEOs Karen Boone and Chris Bruzzo will take on leadership roles until a permanent replacement is found.
