403
Sorry!!
Error! We're sorry, but the page you were looking for doesn't exist.
Peloton Flat On Layoffs, CEO Departure
(MENAFN- Baystreet) eBay's Stock Falls On Disappointing Guidance Carvana's Stock Rises 30% On Blowout Earnings SkyWater Join Lumotive on Beamforming Technology AMD Beats On Earnings And Raises A.I. Chip Sales Forecast Amazon Tops Earnings Forecasts As Profit Triples Previous Articles Subscribe to Get Small Cap News & Alerts Glenn Wilkins - Thursday, May 2, 2024 Peloton Flat on Layoffs, CEO Departure Peloton (NASDAQ:PTON) announced Thursday that CEO Barry McCarthy will be stepping down and the company will lay off 15% of its staff because it“simply had no other way to bring its spending in line with its revenue.”
McCarthy, a former Spotify (NYSE:SPOT) and Netflix (NASDAQ: NFLX) executive, will become a strategic advisor to Peloton through the end of the year while Karen Boone, the company's chairperson, and director Chris Bruzzo will serve as interim co-CEOs. Jay Hoag, another Peloton director, has been named the new chairperson of the board. Peloton is seeking a permanent CEO.
The company also announced a broad restructuring plan that will see its global headcount cut by 15%, or about 400 employees. It plans to continue to close retail showrooms and make changes to its international sales plan.
The moves are designed to realign Peloton's cost structure with the current size of its business, it said in a news release. It's expected to reduce annual run-rate expenses by more than $200 million by the end of fiscal 2025.
“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,” the company said.
The shares began the trading day down eight cents, or 2.6%, to $3.14.
McCarthy, a former Spotify (NYSE:SPOT) and Netflix (NASDAQ: NFLX) executive, will become a strategic advisor to Peloton through the end of the year while Karen Boone, the company's chairperson, and director Chris Bruzzo will serve as interim co-CEOs. Jay Hoag, another Peloton director, has been named the new chairperson of the board. Peloton is seeking a permanent CEO.
The company also announced a broad restructuring plan that will see its global headcount cut by 15%, or about 400 employees. It plans to continue to close retail showrooms and make changes to its international sales plan.
The moves are designed to realign Peloton's cost structure with the current size of its business, it said in a news release. It's expected to reduce annual run-rate expenses by more than $200 million by the end of fiscal 2025.
“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,” the company said.
The shares began the trading day down eight cents, or 2.6%, to $3.14.
- About Us Contact Us Advertise License Our Content Jobs Disclaimer Privacy Policy
Copyright 1998 - 2024 Baystreet Media Corp. All rights reserved. Nasdaq Stocks: Information delayed 15 minutes. Non-Nasdaq Stocks: Information delayed 20 minutes. Bid and Ask quotation information for NYSE and AMEX securities is only available on a real time basis. Market Data is provided by QuoteMedia. Earnings by Zacks. Analyst Ratings by Zacks
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Most popular stories
Market Research
More Story
Comments
No comment