In a Peloton déjà vu, the fitness-equipment company is cutting 400 jobs and looking for a new CEO as it struggles to shape a business model beyond selling expensive stationary bikes.

Just two years ago, Peloton replaced its co-founder John Foley in the CEO seat with Barry McCarthy, formerly of Netflix and Spotify. That shakeup included laying off 2,800 employees, or about a fifth of them, followed by other rounds of job cuts.

On Thursday, Peloton once again announced layoffs — this time of 15% of its workforce, or about 400 positions. It will continue to close physical showrooms. And now it's McCarthy's turn to step down; another CEO search begins anew.

"I once described turnarounds as a full contact sport; intellectually challenging, emotionally draining, physically exhausting, and all consuming," McCarthy wrote on Thursday. "From where I sit today, that pretty much summarizes my experience these last two years."

About the layoffs, he said Peloton "simply had no other way to bring its spending in line with its revenue."

The cost-cutting comes as Peloton tries to stop losing money and grow past its identity as a seller of luxury fitness equipment. Under McCarthy, with his expertise in subscriptions, Peloton has tried to focus more on corporate wellness, removed the free app membership option and struck deals with companies like Lululemon and Hyatt hotels.

McCarthy said Peloton was able to improve a key financial metric of free cash flow. But a subscription revolution did not happen.

Peloton's stock value has plummeted more than 90% since the pandemic-era boom, when lockdowns had people splurging on Peloton's $2,000 stationary bikes plus a monthly fee for video-streamed classes. As people returned to their gyms and fitness studios, Peloton's equipment gathered dust.

Then came a series of safety crises. Peloton tussled with federal officials over an eventual recall of treadmills. They had caused dozens of incidents including a death of a 6-year-old. Peloton's handling of all this resulted in a $19 million fine. Last year, the company also recalled nearly 2.2 million bikes.

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