Peloton — the fitness company behind the internet-famous exercise bike — is crashing right now, losing the plot in almost all aspects of its business.

What happened: Peloton announced Tuesday it will replace CEO John Foley and cut about 20% of its workforce, according to CNN.

  • Close to 2,800 jobs will be slashed.
  • Layoffs begin Tuesday.
  • Barry McCarthy, the former chief financial officer of Spotify and Netflix, will become the company’s new CEO and president.
  • Foley will move into a new role as the company’s executive chair.
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What they’re saying: “This restructuring program is the result of diligent planning to address key areas of the business and realign our operations so that we can execute against our growth opportunity with efficiency and discipline,” the company said in a press release.

Context: Peloton rose to fame as a pandemic darling since people were spending time at home and could use an at-home product to stay in shape.

What’s next: Amazon has been seen as a potential buyer for Peloton, according to The Wall Street Journal.

  • People familiar with the matter told the WSJ that Amazon has spoken with advisers about picking up Peloton.
  • “There’s no guarantee the e-commerce giant will follow through with an offer or that Peloton, which is working with its own advisers, would be receptive,” the WSJ reports.
  • Nike is another rumored suitor to buy Peloton.