Peloton to replace CEO and cut 2,800 jobs

Peloton to replace CEO and cut 2,800 jobs

Peloton is replacing its CEO and is cutting 20% of its workforce to help reinvigorate the flailing fitness company. Barry McCarthy, the former CFO of Spotify and Netflix is set to become the next CEO of Peloton, effective Wednesday. Foley will become the executive chair of the company. He wrote in a public note that the appointment is the "culmination of a months-long succession plan" he's been working on with the board.

Meanwhile, Peloton also announced that it will lay off around 2,800 employees, including 20% of its corporate positions. The company is also cutting down on the number of warehouses it owns and operates. They also plan on expanding delivery agreements with third-party providers, which will help Peloton save $800 million in annual costs. 

In a press release, the company said, "This restructuring program is the result of diligent planning to address key areas of the business and realign our operations so that we can execute against our growth opportunity with efficiency and discipline." The layoffs begin on Tuesday and the affected employees will receive a 1-year digital subscription to Peloton as part of their severance.

Source: CNN 
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