Peloton CEO John Foley resigned in February after the connected exercise pioneer eliminated 2,800 workers. No one could argue the news came as a surprise. After riding high on pandemic sales and then plummeting back to Earth, the company was in a tumultuous state. Add in the major product recall in 2021, and the executive is in for a hard couple of years. Even with former Spotify CFO Barry McCarthy in place, it appears the corporation isn’t out of the woods yet.
“We are thrilled to have found in Barry the perfect leader for the next chapter of Peloton,” Foley said at the time. “This appointment is the culmination of a months-long succession plan that I’ve been working on with our Board of Directors, and we are thrilled to have found in Barry the perfect leader for the next chapter of Peloton.” “I am excited to collaborate with him, and I encourage you to embrace him with open arms.” According to a fresh story from The Wall Street Journal, Pelton is actively wooing investors to acquire 15 to 20% of the firm in an effort to right the ship. As Peloton tries to restore its footing in the face of gym reopenings and greater competition, the transaction might bring in some much-needed cash.
With the correct investment, the organization may be able to regain trust that it is on the right route. The move would be far less dramatic than previous allegations that it was considering an outright sale to a bidder with vast riches like Amazon. Peloton’s new leadership, on the other hand, appears to be striving to put the firm in a better position to assist restore some value before a sale. Jason Aintabi of Blackwells Capital called for Foley to be dismissed and for the firm to consider a sale weeks before he left. Peloton has been contacted for comment.
John Foley announced his resignation as CEO of Peloton ahead of today’s earnings announcement. Former Spotify CFO Barry McCarthy will take up the post of executive chair, which will be held by the long-serving CEO. In his open letter, Foley said, “Barry is an excellent leader who has held top executive roles at Spotify and Netflix and is a longtime advisor and board member at public and private digital businesses.”
“This selection is the result of a months-long succession plan that I’ve been working on with our Board of Directors, and we’re happy to have identified in Barry the ideal leader for Peloton’s next chapter.” I’m looking forward to working with him, and I hope you’ll warmly welcome him.” In addition, the company is laying off 2,800 people worldwide, or around 20% of its total staff. “Cuts will be made at every level of the business,” according to the report. Such measures come at the conclusion of a tumultuous few years for the linked fitness brand, which culminated in a decline in demand.
In addition to Foley, William Lynch, Peloton’s five-year president, will join the company’s board of directors as a nonexecutive director. Foley also mentions that his wife, Jill Foley, who has served as the brand’s VP of Apparel, will be leaving the position. Foley remarked, “She developed and built our great Apparel business from the ground up.” “We are all really proud of Jill and the team that has assisted her in building that area of our company into what it is today.”