Peloton CEO stepping down, company cutting 15% of its global workforce

Peloton CEO Barry McCarthy is stepping down from his role and the the company is cutting 15% of its global workforce, according to a company announcement on Thursday.

Peloton fell into a post-pandemic slump and has had trouble regaining its footing.

"This restructuring will position Peloton for sustained, positive free cash flow, while enabling the company to continue to invest in software, hardware and content innovation, improvements to its member support experience, and optimizations to marketing efforts to scale the business. Upon full implementation, the company expects the plan to result in reduced annual run-rate expenses by more than $200 million by the end of its 2025 fiscal year," a Peloton press release read.

Karen Boone, the current chair of the company, and director Chris Bruzzo are going to serve as interim co-CEOs.

McCarthy, who previous worked as a Spotify and Netflix executive, will remain as a strategic advisor to company throughout the rest of the year.

Shares of Peloton reportedly went up 14% before the opening bell on Thursday.