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Peloton, an exercise equipment company known for its stationary bicycles, indoor rowing machines, and treadmills, has announced layoffs as well as the resignation of the company’s CEO. The company will cut four hundred workers, which will reduce Peloton’s workforce by 15%, as well as close several various physical showrooms. Peloton CEO Barry McCarthy, who was previously a CFO at Netflix and Spotify. McCarthy stated that Peloton’s operating costs are significantly high, and laying off employees and changing management would allow the company to reduce the gap between costs and revenue. Peloton has implemented similar changes before, and in 2022 the company replaced its CEO and cut 2800 employees. Peloton has faced a variety of safety issues in recent months and had to recall treadmills and stationary bikes due to safety concerns. The company was also fined $19.9 million by federal officials due to these issues.