Peloton names Ford exec, Apple Fitness+ founder Peter Stern as new CEO to drive turnaround
Stern will become the company's third CEO in as many years
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Peloton on Thursday named Ford executive Peter Stern as its new CEO, tasking him with trying to turn around the beleaguered high-end fitness company.
It's the company's third CEO in under three years.
Stern, who currently serves as the president of Ford Integrated Services, will take over as CEO and join the company's board of directors in January.
Jay Hoag, the chairman of Peloton's board, said Stern is "a seasoned strategist with a track record of driving sustainable growth through innovation.
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"We have every confidence in his ability to lead Peloton during this important time," Hoag said. "He brings meaningful expertise in scaling differentiated technology-oriented platforms and has a deep understanding of the health and wellness sector — making him uniquely suited to serve as Peloton’s next CEO."
A person walks past a Peloton store in Manhattan on Jan. 25, 2022. (Reuters/Carlo Allegri/File Photo / Reuters Photos)
Karen Boone and Chris Bruzzo were named interim co-CEOs and co-presidents in May after former CEO Barry McCarthy was ousted.
McCarthy took the reins from John Foley in February 2022 and was tasked with turning around the company, which faced a post-pandemic slump and struggled to navigate after the tragic death of a child involving one of its treadmills. But the turnaround effort was unsuccessful.
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Following a surge in business during the pandemic, Peloton battled to remain relevant as people returned to traditional gym workouts when social distancing restrictions eased. To combat the declining sales, it deployed various efforts to cut costs and expand its customer base.
A man rides a Peloton Bike. (Peloton)
It laid off hundreds of employees, raised the prices of its equipment, outsourced manufacturing to a Taiwanese company and started to sell its products outside its stores at Amazon and retailers like Dick's Sporting Goods to attract more customers.
It also made its app more accessible by offering more membership tiers and offering many classes for free.
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Under McCarthy, Peloton forged partnerships with Hyatt and Lululemon. But the company said it's still trying to align its cost structure with the current size of its business.
Troubles aren't over, either. Peloton on Thursday projected that the holiday quarter would be softer than expected.