Peloton has had a challenging few days, with the announcement of layoffs affecting around 400 employees and the resignation of CEO Barry McCarthy. The company is also closing retail showrooms as part of efforts to align its cost structure with its current business size. Peloton Chairperson Karen Boone and Director Chris Bruzzo will serve as interim co-CEOs while the company searches for a new CEO.
The company, founded in 2012, gained popularity for its stationary exercise bikes with built-in virtual classes. After going public in 2019, Peloton’s share price surged during the Covid-19 pandemic due to the closure of gyms and fitness centers. However, the share price has declined significantly in recent years, with shares trading at $3.13 as of May 2. If an individual had invested $1,000 in Peloton in 2019, 2021, or 2023, their investment would have decreased by 89%, 98%, and nearly 64%, respectively.
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