John Foley, co-founder and former CEO of Peloton.
Michael Nagle | Mayor Bloomberg | fake images
platoon announced the resignations of two of the company’s founders and another top executive on Monday, marking the end of an era for the struggling fitness equipment company as Chief Executive Officer Barry McCarthy dramatically reshapes the business.
Co-founder and former CEO John Foley resigned from his role as executive chairman of the board effective Monday. Co-founder Hisao Kushi will step down from his position as company legal director on October 3. Chief Commercial Officer Kevin Cornils, who has been with the company since 2018, will leave on September 23.
investment related news
Foley served as executive director of Peloton for almost 10 years before resigning in February, coinciding with a big round of layoffs. McCarthy took the helm and Foley moved into the CEO role.
“There would be no Peloton without John Foley or Hisao Kushi,” McCarthy wrote to Peloton employees. “Without John’s unwavering commitment to his dream, a passionate and devoted community of nearly 7 million Peloton members would not exist. I want to thank John for paving the way.”
Peloton, which went public in 2019, thrived during the early days of the pandemic as gyms closed and people stayed home to work out. Shares of the company peaked at around $167 in October 2020. However, as of Monday’s close, the stock was at $11.05, down almost 70% this year.
The moves announced Monday represent the latest wave of shakeups under McCarthy, who came to Peloton after holding roles at Netflix and Spotify. He has pushed his Peloton trade plan since took over as CEO and realized the depth of the problems plaguing the company.
McCarthy’s changes have included the introduction of rental options for the company’s bicycles, the certification of used bicycles for resale, the sale of bicycles and other products in Amazonand pushing to expand Peloton’s digital subscriber reach.
Karen Boone, former president of restoration toolswill take Foley’s place as chairman of the board.
Kushi will be replaced by Tammy Albarrán, UberChief Deputy General Counsel. Albarrán, as a partner at Covington & Burling, helped lead an investigation into Uber’s workplace culture prior to its IPO in 2017. “Albarrán oversaw Uber’s global legal teams and was a driving force behind the company’s cultural transformation. company,” McCarthy wrote in a Monday press release, calling the changes at Uber “profound.”
Chief strategy officer Dion Sanders, who has overseen many of McCarthy’s changes, will take on the new title of chief emerging business as he takes on many of the responsibilities of Cornils, the outgoing chief commercial officer. The company also signaled its commitment to its apparel and accessories efforts, which will be officially overseen by Jen Cotter, Peloton’s chief content officer.
Foley, for his part, praised the management team he is leaving and hinted at a new company.
“Now is the time to start a new professional chapter,” Foley said in Monday’s statement. “I have a passion for building companies and creating great teams, and I’m excited to do it again in a new space.”