Peloton mentioned on Thursday that its chief govt, Barry McCarthy, was stepping down and that it could lay off extra employees, because it continued to wrestle within the health market.

The connected-fitness firm introduced disappointing quarterly earnings on Thursday, with income down 4 % from final yr. The corporate, which has not turned a revenue since December 2020, can also be seeking to refinance greater than $1 billion in debt.

Peloton had a spectacular rise at the beginning of the pandemic, when gyms and health facilities closed and shoppers had been hungry for at-home exercise choices. However after gyms reopened, Peloton started to face stiffer competitors from firms like Bowflex and Lululemon.

Barry McCarthy, a former Spotify and Netflix govt, joined Peloton in 2022.Credit score…Kevin Dietsch/Getty Pictures

It’s lowering its head rely by 15 %, or 400 employees, in an effort to chop its prices by $200 million by June 2025. Peloton has had a number of different rounds of job cuts up to now couple of years, most lately in October 2022, when it laid off about 12 % of staff, or about 500 individuals.

“Arduous as the choice has been to make extra head rely cuts, Peloton merely had no different strategy to deliver its spending in step with its income,” Mr. McCarthy said in a statement.

Buyers appeared optimistic in regards to the information; Peloton’s inventory value rose about 9 % in premarket buying and selling.

The corporate mentioned it was seeking to scale back its retail footprint and as a substitute put money into “software program, {hardware} and content material portfolio and in enhancements” for paying subscribers.

Mr. McCarthy, a former Spotify and Netflix govt, joined Peloton in February 2022, taking up from the corporate’s founder, John Foley. Two board members, Karen Boone and Chris Bruzzo, will function interim co-chief executives.

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