Peloton CEO John Foley announced he is stepping down and will become executive chair, amidst the announcement of a company restructuring plan.
John Foley announced he is stepping down as CEO of Peloton and will become executive chair.
Barry McCarthy, the former chief financial officer of Spotify and Netflix, will step into Foley’s role.
The news comes amidst the announcement of a restructuring program that will involve Peloton cutting approximately 2,800 global positions — representing 20% of its corporate workforce — and winding down the development of its Peloton Output Park (POP) manufacturing plan.
In a press release about the restructuring, Peloton shared these steps should allow the company to achieve at least $800 million of annual run-rate cost savings.
“Peloton is at an important juncture, and we are taking decisive steps,” said Foley in a statement. “Our focus is on building on the already amazing Peloton member experience, while optimizing our organization to deliver profitable growth. With today’s announcements, we are taking action to ensure Peloton capitalizes on the large, long-term Connected Fitness opportunity. This restructuring program is the result of diligent planning to address key areas of the business and realign our operations so that we can execute against our growth opportunity with efficiency and discipline.”
Peloton has announced its financial results for second quarter 2022, and an earnings conference call was rescheduled to 8:30 a.m. ET on February 8, 2022.
According to CNN, Peloton shares gained 20% on February 7, 2022, following reports that Apple, Amazon and Nike were exploring bids to buy the company.
