Peloton, once praised as the future of fitness, is now struggling. Here’s the reason.

Peloton, the connected fitness company known for its tech-enabled stationary bikes and treadmills, is facing yet another shakeup in leadership. CEO Barry McCarthy has announced his departure, along with 400 job cuts, as the company struggles to regain its footing in the fitness industry.

The company, which saw unprecedented growth during the COVID-19 pandemic, is now grappling with declining sales and a dwindling subscriber base. McCarthy cited the need to align spending with revenue and refinance debt as reasons for the drastic measures.

Peloton’s rise to fame during the pandemic was meteoric, with a valuation of $50 billion and long waitlists for its equipment. However, as restrictions eased and gyms reopened, the company failed to sustain its momentum.

Experts believe Peloton must now decide on a new direction post-COVID. Eric Koester, an adjunct professor at Georgetown University, suggests the company may need to pivot towards developing new in-home fitness products or focus on its existing customer base.

Analysts point out that the pandemic-induced surge in demand may have actually hurt Peloton in the long run. BMO Capital Markets analyst Simeon Siegel believes the company mistook temporary pandemic-era growth for lasting success.

As Peloton searches for a new CEO to navigate these challenges, the future of the once red-hot fitness fad remains uncertain. With cash-flow issues, product recalls, and a shifting market landscape, the company must find a way to recapture its former glory and adapt to a post-pandemic world.