Peloton CEO John Foley is stepping down, the company announced on Tuesday.- He's being replaced by Barry McCarthy, a former CFO of Spotify and Netflix.
Peloton cofounder John Foley is relinquishing his role as CEO, the company $4 on Tuesday.
Foley, who cofounded Peloton in 2012, is set to become executive chair. Barry McCarthy, formerly a chief financial officer of Spotify and Netflix, is expected to replace Foley as CEO. McCarthy is also replacing William Lynch as president.
The connected-fitness company plans to slash about 2,800 jobs, or 20% of its corporate workforce, as part of cost-cutting measures that come on the back of falling demand for at-home fitness.
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The firm expects the measures to deliver at least $800 million a year in savings. It also announced it would be $4 of Peloton Output Park, its planned $400 million Ohio facility.
Peloton saw demand for its products soar during the pandemic as lockdowns forced gym-goers to find options for working out at home. But growth started to slow as restrictions eased, and $4 in January of pauses in production of Peloton bikes and treadmills because of a slowdown in orders.
Peloton's market value has plummeted from $50 billion last year to $9.8 billion.
In late January, activist investor Blackwells Capital $4 to fire Foley and explore options to sell the company. $4 reported on Friday that several potential buyers, including Amazon, were eyeing a deal, while the $4 reported on Saturday that Nike was considering making a bid for the business.
Foley and McCarthy told The Journal on Tuesday that the company had been planning to find a new CEO for a long time. "I have always thought there has to be a better CEO for Peloton than me," Foley said. "Barry is more perfectly suited than anybody I could've imagined."
McCarthy is a board member at Instacart and Spotify.
Peloton's stock fell 8.7% in Tuesday's premarket session, to $27.11 a share. Shares were down 18% this year as of Monday's close.