John Foley, co-founder and former chief executive officer of Peloton.
Michael Nagle | Bloomberg | Getty Images
Peloton on Monday announced the resignation of two of the company’s founders and another top executive, marking the end of an era for the struggling fitness equipment company as CEO Barry McCarthy drastically reshapes the company.
Co-founder and former CEO John Foley has stepped down from his position as executive chairman of the board effective Monday. Co-founder Hisao Kushi will step down from his position as the company’s Chief Legal Officer on October 3. Chief Commercial Officer Kevin Cornils, who has been with the company since 2018, will leave on September 23.
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Foley served as Peloton’s CEO for nearly 10 years before stepping down in February, which coincided with a slew of layoffs. McCarthy took the helm and Foley transitioned to the role of executive chairman.
“There would be no Platoon without John Foley or Hisao Kushi,” McCarthy wrote to Platoon staff. “Without John’s unwavering commitment to his dream, there would not be a passionate and committed community of nearly 7 million Peloton members. I want to thank John for paving the way.”
Peloton, which went public in 2019, thrived during the early days of the pandemic when gyms closed and people stayed at home to exercise. The company’s shares peaked at about $167 in October 2020. However, at the end of Monday, the stock stood at $11.05, down nearly 70% this year alone.
The moves announced Monday represent the latest wave of shake-ups under McCarthy, who came to Peloton after a tenure at Netflix and Spotify. He has implemented his plan for a turnaround in Peloton ever since he took on the role of CEO and realized how deep the problems the company was facing were.
McCarthy’s changes include the introduction of rental options for the company’s bicycles, certifying used bicycles for resale, selling bicycles and other products on Amazon, and pushing to expand Peloton’s digital subscriber reach.
Karen Boone, the former president of Restoration Hardware, will replace Foley as chairman of the board.
Kushi is replaced by Tammy Albarrán, Uber’s deputy general counsel. Albarrán, as a partner at Covington & Burling, helped lead a study of Uber’s workplace culture ahead of its IPO in 2017. “Albarrán oversaw Uber’s global legal teams and was a driving force behind the company’s cultural transformation. McCarthy wrote in a Monday press release calling the changes at Uber “profound.”
Chief Strategy Officer Dion Sanders, who oversaw many of McCarthy’s changes, will assume the new title of Chief Emerging Business Officer as he takes on many of the responsibilities of Cornils, the outgoing Chief Commercial Officer. The company also showed a 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 leaves behind and hinted at a new venture.
“Now it’s time for me to start a new professional chapter,” Foley said in Monday’s release. “I’m passionate about building businesses and creating great teams, and I’m excited to do that again in a new space.”