Peloton (PTON) Pumps the Brakes on Labor, Cuts 15% of Workforce as CEO McCarthy Dismounts

This morning the exercise enthused company Peloton Interactive, Inc. (PTON) announced its 3Q financials which not only missed Street estimates but disclosed the company’s intention to cut about 400 jobs equating to 15% of its workforce which is intended as a restructuring initiative to sustain positive free cash flow.  To add to the deflated news, the company’s CEO, Barry McCarthy resigned. While McCarthy made multiple attempts to keep the company pedaling, over the course of the past few months, the company continued struggling to grow at scale and may not grow revenues until Q4. The Board has issued a search for its next CEO. Karen Boone, current Peloton Chairperson, and Chris Bruzzo, a Peloton Director, will serve as Interim Co-CEOs

The company is listed in the PRISM Consumer Products Index and currently last in the race on the day.