Peloton co-founders John Foley, Hisao Kushi resign in leadership shakeup
The fitness giant's chief commercial officer is also leaving
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Three members of Peloton Interactive's leadership team are exiting the company as the fitness giant works to turn around its struggling business.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PTON | PELOTON INTERACTIVE INC. | 9.54 | +0.48 | +5.30% |
Co-founder John Foley has stepped down from his position as executive chair, effective Monday. He previously served as Peloton's CEO until February 2022, when former Spotify and Netflix executive Barry McCarthy took over the position.
Peloton co-founder John Foley is stepping down from his role as executive chair. (Michael Nagle/Bloomberg via Getty Images / Getty Images)
Meanwhile, co-founder and Chief Legal Officer Hisao Kushi will leave the company Oct. 3. Kushi will be replaced by Uber's chief deputy general counsel Tammy Albarran.
"I would like to offer my gratitude to John and Hisao for their shared vision, dedication, and passion for Peloton," McCarthy said memo to staff. "Through their hard work, they have given the world the connected fitness industry and created a platform that empowers each of us to be the best version of ourselves. We are indebted to them for their countless contributions."
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In addition, Peloton Chief Commercial Officer Kevin Cornils will depart the company on Sept. 23.
"Kevin has worked tirelessly to grow Peloton into the international brand it is today, recently helping to innovate the company’s go-to-market strategy and operationalizing new initiatives like selling through 3rd party retail and our Peloton Rental offering," McCarthy added.
Peloton Interactive has embarked on an $800 million restructuring plan, which has included layoffs and price hikes on its Bike+ and Tread products. (REUTERS/Shannon Stapleton / Reuters Photos)
Chief Strategy Officer Dion Sanders will assume many of Cornils' responsibilities and become the company's new chief emerging business officer. In addition, Chief Content Officer Jen Cotter will assume oversight of the company's apparel and accessories strategy and operations.
Karen Boone has also been appointed as the chairperson of Peloton's board. She first joined the board in 2019 and later became its lead independent director.
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The leadership changes come as Peloton has embarked on an $800 million restructuring plan that thus far has included layoffs and price hikes on its Bike+ and Tread products. The company also plans to significantly reduce its North American retail footprint and eliminate its final mile distribution network.
In late August, Peloton reported $1.24 billion in losses for the fourth quarter, up from a loss of $313.2 million a year earlier. Total quarterly revenue fell 28% to $678.7 million, compared to $936.9 million in the same period a year ago.