Boston, Massachusetts – Peloton’s CEO Barry McCarthy has announced his resignation following the company’s recent decision to implement another round of layoffs affecting about 15 percent of its global workforce. This move marks the fifth round of layoffs for the pandemic-fueled fitness company and comes after previous assurances from McCarthy that the company had concluded its downsizing efforts.

In an outgoing message, McCarthy stated that the layoffs were necessary to align Peloton’s spending with its revenue, as part of a larger 12-month restructuring program aimed at reducing annual expenses by over $200 million. This decision comes as Peloton seeks to refinance its debt and navigate the challenges posed by the shifting post-pandemic market demands.

McCarthy, a former executive at Spotify and Netflix, is stepping down just over two years after taking the helm from founder John Foley. Board members Karen Boone and Chris Bruzzo are set to serve as interim co-CEOs until a permanent replacement is appointed, signaling a transitional period for the company.

This development underscores the tumultuous journey of Peloton, which experienced significant success during the lockdown period but faced unexpected challenges as the world began to reopen post-covid-19. The company had made substantial investments in its supply chain to address pandemic-related delays, only to encounter new obstacles in adapting to the changing market dynamics.

As Peloton navigates this period of transition, stakeholders are closely watching how the company will adjust its strategies and leadership structure to address the evolving landscape of the fitness industry. The departure of McCarthy and the appointment of interim co-CEOs mark a pivotal moment for Peloton as it seeks to regain its footing and chart a new path forward in a post-pandemic world.