Peloton CEO Foley to step down as bikemaker plans job cuts
Peloton’s Chief Executive Officer John Foley to step down and become executive chair.
Barry McCarthy, former chief financial officer at Spotify Technology SA, will become CEO and president.
The news comes as Peloton’s stock surged on Monday off the back of the news that Amazon and Nike have approached the struggling fitness brand to explore a takeover.
The two giants are currently the only names that have been reported as holding an interest in purchasing Peloton, however the Journal claims that there are other potential suitors interested.
Shares had tumbled more than 80% from their all-time high a year ago, as the gradual easing of pandemic-era restrictions fuelled concern that growth of the stay-home fitness company will slow.
The Financial Times has also separately reported the news, saying that the talks are so far only preliminary and that Nike has not yet spoken with Peloton and an Amazon spokesperson told the BBC that the company does not “comment on rumours and speculation.”
The firm has also reported they will now shed about 2,800 jobs, affecting around 20% of corporate positions.
Blackwells Capital LLC, which has a stake of less than 5%, has called for Foley’s resignation and wants Peloton to explore a sale of the business.
It decried the CEO’s leadership, citing failed forecasting and inconsistent strategy, and governance problems such as a lack of financial controls. It also said Foley misled investors by saying that the company didn’t need more capital, weeks before a $1 billion stock offering.
Foley, a former Barnes & Noble Inc. e-commerce executive and cycling enthusiast, founded the company after posting a video to Kickstarter in 2013.