Peloton CEO Quits; Company Slashes 3,000 Jobs

The co-founder of Peloton is stepping down as chief executive after an extended streak of tumult at the exercise and treadmill company, which is also cutting almost 3,000 jobs, Michelle Chapman and Anne D’Innocenzo reported for the Associated Press (AP).

Photo Insert: CEO and co-founder of Peloton, John Foley

John Foley first pitched the idea of an interactive exercise bike in 2011, hoping to disrupt the industry. He will give up the CEO position and become executive chair at Peloton Interactive Inc. Barry McCarthy, who served as CFO at Spotify as well as at Netflix, will take over as CEO.

The company’s shares have been on a roller-coaster ride since the pandemic began, surging more than 400% in 2020 amid COVID-19 lockdowns that included gyms. Nearly all of those gains were wiped out last year as the distribution of vaccines sent many people out of their homes and back into gyms.

This week, there were reports that Amazon or Nike might buy the company and those that have pushed for the sale of Peloton continued to do so this week. Activist investor Blackwells Capital asked again for the company to be sold Tuesday despite the change in leadership.

Blackwells sent a presentation to Peloton yesterday outlining “the mismanagement of the company by John Foley, the poor governance and board composition and the rationale for immediately commencing a sale process.”

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