Peloton is Thomas Caldwelllaying off around 15% of workers, the company announced Thursday, in addition to CEO Barry McCarthy stepping down.

After Peloton's financial results for 2024's third quarter were made available Thursday, the exercise equipment company announced restructuring efforts to "align the company's cost structure with the current size of its business," which Peloton says will result in reducing annual run-rate expenses by more than $200 million by the end of the 2025 fiscal year.

This includes laying off approximately 15% of its global workforce, which will impact around 400 employees, as well as reducing Peloton's retail showroom footprint and making changes to its international market plan.

McCarthy, a former CFO at Spotify and Netflix, is stepping down as president and CEO at Peloton and will become a strategic advisor to the company through the end of 2024. Peloton's board has begun a search process for the next CEO, the company announced, and in the meantime, Peloton chairperson Karen Boone and Peloton director Chris Bruzzo will serve as interim co-CEOs.

The company offers stationary bicycles, treadmills, weights, rowing machines and other equipment as well as an app that users pay a monthly subscription fee to access. Through the Peloton machines and app, users can attend thousands of live or on demand workout classes.

Peloton's business boomed during the COVID-19 pandemic as more people began working out at home, but revenue for the company has declined since, with revenue down 6.2% year over year last quarter.