Peloton’s co-founder and former CEO rides into the sunset

Photo by Kimberly White / Getty Images for TechCrunch

The latest big shakeup at the connected fitness company was marked by the resignation of the executive chairman of the board.

There has been a lot of turmoil in the last few weeks for Peloton. Despite selling products and classes that are popular, the company has had to cut jobs and adjust prices after overextending to meet increased demand during the early part of the Pandemic. Barry McCarthy, the company's current CEO, said in August that the company's earnings were a sign of progress.

The man who was the CEO of the company for over a decade stepped down in February, but will now be moving on from the company. 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. The lead independent director will be the chairperson.

On Monday, a number of executive departures were announced by the company. Hisao Kushi, the chief legal officer and one of the co- founders of Peloton, resigned and was replaced by Tammy Albarrn. The chief commercial officer is leaving.

Barry McCarthy thanked the executives who are leaving in a memo to staff. McCarthy's full memo can be found below.

Team,

I would like to update you on several leadership changes at the company.

The changes include:

Co-founder and Executive Chair John Foley has decided to step down from Peloton’s Board of Directors and Karen Boone, our lead independent director, has been elected to the role of Chairperson of the Board (press release will be shared with you in a separate email).

Chief Legal Officer Hisao Kushi, who helped co-found the company, will depart and Tammy Albarrán will become our new CLO. Tammy joins us from Uber.

Chief Commercial Officer Kevin Cornils will be departing, and we will not backfill his role. Dion Sanders will add to his portfolio and assume many of Kevin’s responsibilities, becoming our new Chief Emerging Business Officer.

Jen Cotter, Chief Content Officer, will assume oversight of our apparel and accessories strategy and operations.

Dara Treseder, SVP Marketing, Communications, and Membership, will report directly to me.

First, let me say, there wouldn’t be a Peloton without John Foley or Hisao Kushi (or co-founders Tom Cortese, Graham Stanton, and Yony Feng). They established the mission and values that guide us to this day. Through their hard work, they have given the world the connected fitness industry and created a platform that empowers each of us to be the best version of ourselves.

We’ve all heard the stories of John’s relentless pursuit of this vision. Founders get to be founders because they see things the rest of us don’t and have the courage to go for it. Without John’s unwavering commitment to his dream, there wouldn’t be a passionate and devoted community of nearly 7 million Peloton Members. I want to thank John for paving the way.

The same should be said of Hisao, who has guided Peloton’s intellectual property and legal strategy from day one. After deciding to step back and embark on a next chapter, Hisao partnered with me on the process of vetting CLO candidates and recruiting his successor. I want to thank him for all he has done and his help during this transition.

We will share today’s press release with you in a subsequent email. Our external announcement commemorates two of our co-founders and their many contributions.

I also would like to thank Kevin Cornils, who joined Peloton in 2018 as MD, International and became Chief Commercial Officer in 2021. Kevin has worked tirelessly to grow Peloton into the international brand it is today, recently helping to innovate the company’s go-to-market strategy and operationalizing new initiatives like selling through 3rd party retail and our Peloton Rental offering. Kevin has decided the time is right to look for another opportunity that will require him to travel less (he’s been living on airplanes) and allow him to bring his energy, once again, to an early stage business looking to scale.

Today’s changes are a reflection of personal decisions by leaders who paved the way for our future success, and we owe them our gratitude.

I’m excited to work with Karen, Dion and Tammy in their new or expanded roles – as well as each of you – as we pivot into the growth phase of our transformation.

Me to you. You to me. You to each other. And all of us to our Members.

-Barry