Person of interest: Barry McCarthy

A Netflix and Spotify veteran, Barry McCarthy took over as CEO from Peloton co-founder John Foley in February this year—smack in the middle of massive layoffs and other cost-cutting efforts.

Initially taken aback by how deep supply chain issues ran at the firm, he’s been trying to revive the ailing business and increase cash flow by growing subscription revenue.

In the shareholder’s letter accompanying the company’s fourth quarter results in August, McCarthy compared the company to a cargo ship that found itself in rough waters.

He wrote: “We’ve sounded the alarm for general quarters. Everyone’s at their station. We continue to add new inputs to evolve our go to market strategy to restore growth. When will the ship respond is the question. Our goal is FY23.”

A brief history of Peloton’s revamping efforts under McCarthy

March 10: Peloton pilots One Peloton Club—a subscription service for its workout equipment and on-demand classes

July 12: Peloton brings its own manufacturing to a halt and outsources to Taiwan-based Rexon Industrial Corp to cut costs

Aug. 12: Peloton cuts 800 jobs, raises prices for Bike+ and Tread machines, and outsources functions like delivery and customer services

Aug. 15: McCarthy says Peloton is redesigning bikes to allow self assembly

Aug. 24: In a shift away from its direct-to-consumer-only strategy, Peloton starts selling select equipment and apparel on Amazon

Sept. 12: Peloton announces sweeping leadership changes, including the departure of co-founder, executive chairman and former CEO Foley as well as co-founder and chief legal officer Hisao Kushi

Sept. 13: Peloton expands its rental program (formerly One Peloton Club) across the US. Customers can rent the original Bike and membership for $89 a month and an addition $150 setup cost. To buy, the original model costs $1,445

Sept. 26: Peloton’s chief marketing officer Dara Treseder prepares to leave the company, effective Oct. 4.

Keep (g)rowing

The company recently announced the release of a smart rower, which is available for pre-order at $3,195. (It won’t be in Dick’s stores.) The fitness classes cost an additional $528 a year. That’s roughly the price of a 7-day cruise.

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