Peloton CEO steps down, fitness unicorn to slash headcount by 15%

Published

1 year ago

May 2, 2024

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Peloton’s chief executive officer is stepping down from the role as the fitness company plans to cut roughly 15% of its global workforce.

Chief Barry McCarthy told Peloton’s roughly 3,500 employees of his resignation in a note sent Thursday morning that his “one lasting legacy at Peloton” is the “GREAT lead team” he’s recruited since stepping into the top job in 2022.

“Although the stock market hasnt recognized this yet, they will. Its simply a matter of time,” McCarthy added in reference to the nearly 45% drop in share price Peloton has experienced so far this year.

“Hard as the decision has been to make additional headcount cuts, Peloton simply had no other way to bring its spending in line with its revenue,” McCarthy added of the forthcoming layoffs, which will affect roughly 400 roles.

McCarthy — who struck deals with the likes of Lululemon, Amazon and Dick’s Sporting Goods during his tenure — said the cuts are the only way to generate positive free cash flow.

“Achieving positive FCF makes Peloton a more attractive borrower, which is important as the company turns its attention to the necessary task of successfully refinancing its debt.”

News of McCarthy’s exit comes just an hour before Peloton is set to release its fiscal third quarter earnings report, when it’s expected to post a 3.5% sales loss.

Peloton shares jumped 11% in early trading.

In the previous quarter, Peloton said sales fell to $744 million — a whopping 6% decline from the year prior and 34% less than two years ago as the exercise-class company struggled to continue its pandemic hot streak, where tons of cooped-up customers bought its at-home stationary bike during COVID lockdowns.

At the time, Peloton also dialed back its fourth-quarter revenue projections to a range between $700 million and $725 million — below analyst estimates of $750 million.

The company also slashed its full-year guidance to a range between $2.68 billion and $2.75 billion, down from its previous forecast of $2.8 billion.

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In McCarthy’s last-ditch effort to bolster revenues, on his last day as CEO on Wednesday, New York City-based Peloton announced a partnership with Hyatt hotels, offering World of Hyatt loyalty members points when they use Peloton equipment at Hyatt properties.

A press release on the partnership said that the deal will see more than 800 Hyatt properties decked out with Peloton equipment, including access to Peloton classes via in-room TVs.

To get access to those classes at home while using Peloton’s exercise bike or treadmills, customers have to dish out $24 per month to use the Peloton App+ — after purchasing the actual equipment.

A brand-new Peloton bike, for reference, retails for between $1,445 and $2,495 depending on the model, while the treadmill, called the Peloton Tread, ranges from $2,995 to $5,995.

Peloton also offers a rowing machine for a steep $2.995.

Strength, yoga, outdoor running and gym workout classes are also offered via the app for a more modest $12.99 monthly.

UK

Fireball at Southend Airport after small plane crashes

Published

4 hours ago

July 13, 2025

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Fireball at Southend Airport after small plane crashes

A small plane has crashed at Southend Airport in Essex.

Essex Police said it was at the scene of a “serious incident”.

Images posted online showed huge flames and a large cloud of black smoke, with one witness saying they saw a “fireball”.

A police statement said: “We were alerted shortly before 4pm to reports of a collision involving one 12-metre plane.

“We are working with all emergency services at the scene now and that work will be ongoing for several hours.

“We would please ask the public to avoid this area where possible while this work continues.”

It has been reported that the plane involved in the incident is a Beech B200 Super King Air.

According to flight-tracking service Flightradar, it took off at 3.48pm and was bound for Lelystad, a city in the Netherlands.

One man, who was at Southend Airport with his family around the time of the incident, said the aircraft “crashed headfirst into the ground”.

John Johnson said: “About three or four seconds after taking off, it started to bank heavily to its left, and then within a few seconds of that happening, it more or less inverted and crashed.

“There was a big fireball. Obviously, everybody was in shock in terms of witnessing it. All the kids saw it and the families saw it.”

Mr Johnson added that he phoned 999 to report the crash.

Southend Airport said the incident involved “a general aviation aircraft”.

Four flights scheduled to take off from Southend this afternoon were cancelled, according to its website.

Flightradar data shows two planes that had been due to land at Southend were diverted to nearby airports London Gatwick and London Stansted.

Essex County Fire and Rescue Service said four crews, along with off-road vehicles, have attended the scene.

Four ambulances and four hazardous area response team vehicles are also at the airport, as well as an air ambulance, the East of England Ambulance Service said.

Its statement described the incident as “still developing”.

David Burton-Sampson, the MP for Southend West and Leigh, posted on social media: “I am aware of an incident at Southend Airport. Please keep away and allow the emergency services to do their work.

“My thoughts are with everyone involved.”

Local councillor Matt Dent said on X: “At present all I know is that a small plane has crashed at the airport. My thoughts are with all those involved, and with the emergency services currently responding to the incident.”

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World

Meredith Kercher’s killer faces new trial over sexual assault allegations

Published

5 hours ago

July 13, 2025

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Meredith Kercher's killer faces new trial over sexual assault allegations

The man convicted of the murder of British student Meredith Kercher has been charged with sexual assault against an ex-girlfriend.

Rudy Guede, 38, was the only person who was definitively convicted of the murder of 21-year-old Ms Kercher in Perugia, Italy, back in 2007.

He will be standing trial again in November after an ex-girlfriend filed a police report in the summer of 2023 accusing Guede of mistreatment, personal injury and sexual violence.

Guede, from the Ivory Coast, was released from prison for the murder of Leeds University student Ms Kercher in 2021, after having served about 13 years of a 16-year sentence.

Since last year – when this investigation was still ongoing – Guede has been under a “special surveillance” regime, Sky News understands, meaning he was banned from having any contact with the woman behind the sexual assault allegations, including via social media, and had to inform police any time he left his city of residence, Viterbo, as ruled by a Rome court.

Guede has been serving a restraining order and fitted with an electronic ankle tag.

The Kercher murder case, in the university city of Perugia, was the subject of international attention.

Ms Kercher, a 21-year-old British exchange student, was found murdered in the flat she shared with her American roommate, Amanda Knox.

The Briton’s throat had been cut and she had been stabbed 47 times.