Peloton is overhauling its leadership and axing thousands of jobs. The co-founder of the exercise brand is stepping down from his CEO position, as Peloton announced it will cut 2,800 jobs.
John Foley has been the chief executive for a decade, and will be replaced by former chief financial officer of Spotify, Barry McCarthy.
Peloton’s largest investors doubled down on its calls for the company to be bought. Nike, Apple and Amazon are rumored to be interested in bidding for the exercise company.
Peloton pairs its equipment with streaming and live exercise classes. During the pandemic, sales of its bikes and treadmills soared. But now that lockdowns are becoming a thing of the past, so too are home workouts. Post-lockdown, people have been returning to gyms and in-person exercise classes rather than working out in their living room. It has left Peloton worth less than a fifth that it was at its peak value of $50 billion.
After the announcement of the change in leadership, Peloton said it will be cutting about 2,800 jobs globally due to the drop in demand.
On the stock exchange, shares jumped by 19 percent after the announcements.
On the leadership change, outgoing CEO Foley said that McCarthy is the right leader to take Peloton into the next growth phase. Foley will shift into a new role as Peloton’s executive chairman.
One of the top investors, Blackwells Capitol, which owns about a 5 percent stake in the company, said that the changes did nothing to address investors’ concerns, and renewed its calls for the company to be sold.
Chief investment officer at Blackwells Jason Aintabi said that Foley proved he is not suited to lead the company, as CEO or executive chair. Blackwells said in a presentation sent to Peloton that the company had been “horribly mismanaged.”
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