The resignation of two of the company's founders and another top executive marks the end of an era for the struggling fitness-equipment company as CEO Barry McCarthy dramatically changes the business.
The executive chairman of the board resigned on Monday. Hisao will step down as the company's chief legal officer in October. Kevin Cornils, the company's chief commercial officer, is leaving in September.
A large round of layoffs coincide with the departure of the CEO, who served for a decade. McCarthy became the leader, and Foley became the executive chair.
McCarthy told the employees that there wouldn't be a Peloton without them. Without John's dedication to his dream, there wouldn't be a passionate and devoted community. John paved the way for me.
During the early days of the Pandemic, people stayed home to work out, which made Peloton thrive. The company's shares hit a high in October of 2020. The stock was down 70% this year as of Monday's close.
McCarthy came to Peloton after working at both of the streaming services. Since taking on the role of CEO, he's pushed his plan to turn the company around.
McCarthy's changes include the introduction of rental options for the company's Bikes, certifying pre-owned Bikes for resale, selling Bikes and other products on Amazon, and pushing to expand the reach of the company's digital subscribers.
Karen Boone will be the new chairperson of the board.
Tammy Albarrn is the chief deputy general counsel.
Cornils, the departing chief commercial officer, will be replaced by Chief Strategy Officer DionSanders, who has overseen many of McCarthy's changes. The company is committed to its apparel and accessories endeavors, which will be overseen by the chief content officer.
He praised the management team he was leaving behind and said he was going to start a new business.
It is time for me to start a new chapter in my life. I have a passion for building companies and creating great teams, and I am excited to do that again.
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