(WSJ) Peloton co-founder John Foley will end his 10-year role as CEO of the company and assume the role of an executive chair.
Foley will be replaced by Barry McCarthy, a former Spotify Technology SA, and Netflix Inc.’s chief financial officer. His deep experience in content-driven subscription models is expected to be a plus for Peloton, in addition to the product development and marketing of Mr. Foley.
The company’s president William Lynch will also step down but remain on the board, while Erik Blachford, a director, will pave the way for two new directors.
The New York-based company will cut about 2,800 jobs, with 20% of them in the corporate positions, in a restructuring move to recover from growing losses amid falling demand for its offerings.
The recent move happened days after it was reported that Peloton was attracting potential buyers, including Amazon. Blackwells Capital LLC had called for the sacking of Mr. Foley while also recommending a sale of the company.
The change of the CEO is now seen to suggest that Peloton is pursuing an independent future or is putting away any potential suitors at its depressed share price.
Peloton’s value of around $8 billion is a significant fall from a high of around $50 billion a year ago, with the stock recently trading below the September 2019 IPO price of $29.
PTON: NASDAQ is down -2.86% on premarket.
