Two of Peloton’s co-founders, including executive chairman and ex-CEO John Foley, have left the beleaguered company, effective immediately.
Chief Legal Officer Hisao Kushi is the other co-founder headed out the gates, to be replaced by Uber’s Chief Deputy General Counsel Tammy Albarran.
Foley’s chairman role will be filled by current lead independent director Karen Boone. Barry McCarthy, formerly of Spotify and Netflix, replaced him as CEO this February.
In addition, Chief Commercial Officer Kevin Cornils is leaving Peloton, and won’t be replaced.
Foley said in a statement that it is time to “start a new professional chapter”.
“I have passion for building companies and creating great teams, and I am excited to do that again in a new space,” he wrote.
Peloton CEO Barry McCarthy credited Foley and Kushi for “giving the world the connected fitness industry”.
Now it remains for McCarthy to turn the fortunes of the flagging fitness company around.
Peloton reported a A$1.72 billion operating loss for the fiscal fourth quarter of 2022. Revenue fell 28 per cent during the quarter, to A$973.2 million, while memberships declined by 143,000 users.
Shares currently sit at US$11.05, compared to the pandemic peaks in January 2021 of US$171.09.
In July, McCarthy announced plans to stop in-house manufacturing, outsourcing all its bicycle and treadmill production as it slims down operations.
Since McCarthy took the reins, Peloton has hiked subscription costs, introduced a gear leasing program, and cancelled plans to build an Ohio factory.
Over 3,500 employees have been let go since Foley stepped down as CEO.
