Exercise equipment manufacturer Peloton on Thursday announced it will ax 15% of its workforce, plus CEO Barry McCarthy.
The company’s layoffs are expected to affect around 400 employees. The cuts are part of a cost-cutting program at the company, which has struggled to maintain high sales after the COVID-19 pandemic.
Peloton struck it big during the lockdowns of 2020, when customers were desperate to find a way to stay healthy indoors. Peloton’s line of stationary bikes and virtual workout programs were especially popular then.
After two years of leading Peloton, Mr. McCarthy will vacate his role as CEO, president and board director. He replaced Peloton co-founder John Foley, who left during the last major cost-cutting measure in 2022.
The company said it’s looking for a replacement for Mr. McCarthy.
Thursday’s cuts are more evidence of a retracting tech industry plagued with layoffs since the start of the year. Recent estimates say downsizing in that arena passed 70,000 recently, with companies like Intel, Amazon and Google leading the cost-cutting charge.
• Vaughn Cockayne can be reached at vcockayne@washingtontimes.com.
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