John Foley and Hisao Kushi, who co-founded Peloton Interactive in 2012, have resigned from their roles at the interactive fitness company amid a leadership shake-up at the connected fitness giant.
Foley stepped down as Executive Chair, effective Monday (September 12), around seven months after relinquishing his role as CEO. Peloton appointed former Spotify CFO Barry McCarthy as Foley’s successor.
During his 10-year tenure as CEO, Foley is credited with using his tech and business experience in transforming Peloton into what it is today, the company said.
“As I reflect on the journey Peloton has been on since we founded it, I am so proud of what we have built together… We founded the company because we wanted to make fitness and wellness convenient, fun, and effective. Because of the work of thousands of people, we’ve done that,” Foley said in a statement as the former executive prepares to start “a new professional chapter.”
“As I reflect on the journey Peloton has been on since we founded it, I am so proud of what we have built together.”
Kushi, meanwhile, will give up his role as Chief Legal Officer, effective October 3. Peloton said Kushi played a major role in expanding the company’s scale and assisted the execution of the group’s mergers and acquisitions, and crafted the novel music license deals, which Peloton described as “the backbone of the Member experience.”
“We are immensely grateful to John and Hisao for having the vision, ambition, and commitment to turn Peloton into the iconic consumer brand it is today. Not only did they succeed in building a great company, they transformed an entire industry by leveraging fitness and technology. Their impact will resonate long after their departure.”
Peloton charges a monthly subscription to users for its music-driven training videos.
The company expanded its presence in the music industry earlier this year with the release of a new video game called Lanebreak, with Warner Music Group as its launch partner.
Peloton enjoyed growth as demand for fitness products at home surged during the COVID-19 pandemic.
But as pandemic restrictions eased, so did the company’s sales. During the most recent quarter, Peloton reported its sixth consecutive quarter of losses due to declining sales. The company also saw a substantial drop in its market valuation in recent months.
Peloton’s share price has fallen 69% year-to-date as of Monday (September 12) on the Nasdaq stock market, with its shares now hovering just around $10 from a peak of $162.72 on December 24, 2020.
The company’s lackluster financial results and the weak appetite for its stock led to Peloton launching a comprehensive restructuring program that included cutting 20% of the company’s global workforce, which equated to around 2,800 jobs.
The restructuring also led to the shutdown of Peloton’s manufacturing activities in Taiwan, reducing its inventories and outsourcing all of its manufacturing needs for its connected fitness hardware, as well as Foley’s resignation as CEO.
Foley will now also step down as Executive Chairman. Peloton appointed Karen Boone as the group’s new Chairperson, over three years after she joined the company’s board as Chairman of the audit committee. She was then named lead independent Director in October 2021.
Prior to joining Peloton, Boone served as President, Chief Financial and Administrative Officer of Restoration Hardware where she led the company in transitioning to its current membership model.
Kushi, on the other hand, will be replaced by Tammy Albarrán as Chief Legal Officer and corporate secretary. Albarrán will be tasked with the company’s legal, compliance and policy functions. She previously served as chief deputy general counsel and deputy corporate secretary at ride-hailing giant Uber Technologies where she oversaw Uber’s global legal teams.
“We are immensely grateful to John and Hisao for having the vision, ambition, and commitment to turn Peloton into the iconic consumer brand it is today. Not only did they succeed in building a great company, they transformed an entire industry by leveraging fitness and technology. Their impact will resonate long after their departure,” Boone said.Music Business Worldwide