- Peloton CEO John Foley is stepping down, the company told The Wall Street Journal.
- He's being replaced by Barry McCarthy, former CFO at Spotify and Netflix, per the WSJ.
- Peloton is slashing around corporate 2,800 jobs to cut costs amid falling demand for, the WSJ reported.
Peloton CEO John Foley is stepping down, the company told The Wall Street Journal Tuesday.
Foley, who co-founded the company in 2012, will become executive chair, the publication reported. Barry McCarthy, who was formerly CFO of Spotify and Netflix, will replace Foley as CEO of the connected-fitness company. McCarthy will also replace William Lynch as president, per the publication.
The Journal also reported that Peloton is slashing around 2,800 jobs, or 20% of corporate roles, as part of cost-cutting measures amid falling demand for at-home fitness.
Peloton saw demand for its products soar during the pandemic as lockdowns forced gym-goers to find options for working out at home. But that started to slow as restrictions were eased, and reports emerged in January of pauses in production of its bikes and treadmills due to a slowdown in orders, triggering a sell-off in the firm's stock. Peloton's market value has plummeted from $50 billion last year to $9.8 billion.
In late January, activist investors Blackwells Capital called on Peloton to fire Foley and explore options to sell the company. The Journal reported Friday that several potential buyers, including Amazon, were eyeing a possible deal, while the Financial Times separately reported Saturday that Nike was considering making a bid for the business.
Foley and McCarthy told The Journal 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 told the publication. "Barry is more perfectly suited than anybody I could've imagined."
McCarthy is a board member at Instacart and Spotify.
Peloton's stock fell 4.5% in Tuesday's pre-market session to $28.40 a share, and is down 16% so far this year.
Insider has reached out to Peloton for comment.
This is a breaking story.
