Peloton Changing Leaders and Implementing Cost Reduction Plan
DENVER, Colo., May 02, 2024 (247marketnews.com)- Peloton Interactive, Inc. (NASDAQ:PTON) stated that its CEO and President, Barry McCarthy, is stepping down and will be temporally replaced by Interim Co-CEOs, Karen Boone, current Peloton Chairperson, and Chris Bruzzo, a Peloton Director.
“On behalf of the Board, I want to thank Barry for his contributions to Peloton. Barry joined Peloton during an incredibly challenging time for the business. During his tenure, he laid the foundation for scalable growth by steadily rearchitecting the cost structure of the business to create stability and to reach the important milestone of achieving positive free cash flow,” stated, Bruzzo.
“With a strong leadership team in place and the Company now on solid footing, the Board has decided that now is an appropriate time to search for the next CEO of Peloton.
“Peloton provides unparalleled fitness experiences for our Members, which they love as evidenced by our strong NPS scores. The team continues to innovate across our hardware, software and content portfolios, while simultaneously driving transformation in our marketing organization to increase engagement with new, targeted audiences. There is a huge opportunity in front of us to significantly expand the number of people we serve,” Bruzzo concluded.
Jay Hoag, a Peloton Director, was newly appointed as Chairperson of the Board, and he commented, “Karen and Chris are two dedicated Directors committed to fulfilling Peloton’s mission, and the full Board and I have the utmost confidence in their joint leadership of the Company on an interim basis. The Board is focused on identifying a new CEO who possesses the ideal combination of skills, experience and vision to execute Peloton’s exciting next chapter and drive shareholder value.
“I have known and worked closely with Barry for nearly two decades and I am grateful for his leadership of Peloton during these last two years, including recruiting a very talented and diverse group of leaders. The Board and I are deeply appreciative that Barry has agreed to serve as a strategic advisor to the Company.”
Peloton Interactive additionally announced comprehensive restructuring efforts that it expects will result in reduced annual run-rate expenses by more than $200 million by the end of its 2025 fiscal year, including reduction in global workforce by approximately 15%, or roughly 400 Peloton employees.
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