John Foley, co-founder and former CEO of Peloton.
Michael Nagle | Bloomberg | Getty Images
The 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 fitness equipment company as CEO Barry McCarthy dramatically reshapes the business.
Co-founder and former CEO John Foley resigned from his position as executive chairman effective Monday. Co-founder Hisao Kushi will step down 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 that he resigned in February, at the same time as a large round of layoffs. McCarthy took the helm and Foley moved into the role of executive chairman.
“There would be no Peloton without John Foley or Hisao Kushi,” McCarthy wrote to Peloton staff. “Without John’s unwavering commitment to his dream, Peloton’s passionate and dedicated community of nearly 7 million 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 were closed and people stayed home to exercise. The company’s stock peaked around $167 in October 2020. However, as of Monday’s close, shares were at $11.05, down nearly 70% this year alone.
The moves announced Monday represent the latest shakeup under McCarthy, who came to Peloton after stints at Netflix and Spotify. He has since pushed through his Peloton turnaround plan assumed the role of CEO and realized the depth of the problems plaguing the company.
McCarthy’s changes included the introduction of the company’s bicycle rental options, the certification of used bicycles for resale, the sale of bicycles and other products on Amazonand seeks to expand the reach of Peloton’s digital subscribers.
Karen Boone, Past President Restoration hardwarewill take Foley’s position as chairman of the board.
Kushi replaces Tammy Albarrán, Uberprincipal deputy general counsel. As a partner at Covington & Burling, Albarrán helped lead an investigation into Uber’s workplace culture before its 2017 IPO. Uber for “deep”.
Chief strategy officer Dion Sanders, who oversaw many of McCarthy’s changes, will take on 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 signaled a commitment to its apparel and accessories efforts, which will be officially overseen by Jen Cotter, Peloton’s chief content officer.
For his part, Foley praised the management team he is leaving and hinted at a new venture.
“Now is the time for me to begin a new professional chapter,” Foley said in Monday’s release. “I have a passion for building companies and creating great teams, and I’m excited to do that again in a new space.”