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co-founder peloton is stepping down as CEO after a prolonged turmoil at the exercise and treadmill company.
Barry McCarthy, who serves as the CFO of Netflix as well as Spotify, will take over as CEO of John Foley, effective Wednesday. McCarthy will also sit on the board of directors.
Foley will become chairman of the board Peloton Interactive Inc.
peloton It was the subject of a potential takeover target by anyone in media reports this week. Amazon and Nike. Tuesday’s developments dampened hopes for such a wealthy buyer and stocks. peloton fell 7% before the opening bell.
The company’s stock has been on a roller coaster ride since the pandemic began. They have increased more than 400% in 2020 as COVID-19 quarantines tighten and shift the exercise trend from the gym to the home.
In 2021, stocks returned nearly all of those gains as businesses reopened and people began returning to gyms. The stock has fallen further this year after news that the company will cut production of bikes and treadmills to offset the drop in sales.
There was also a request late last month from activist investor Blackwells Capital: peloton Removing Foley as CEO and considering selling the company amid declining consumer demand.
peloton it also announced 2,800 layoffs worldwide, including approximately 20% of corporate jobs at the New York City company. Instructors running interactive classes peloton will not be included in the cuts, and there will be no content that the company relies on to lure users.
peloton It aims to reduce its planned capital expenditures for this year by approximately $150 million. The restructuring program is expected to result in approximately $130 million in cash costs and $80 million in non-cash costs related to severance and other exit and restructuring activities. Most of the expenses will be recorded in the 2022 fiscal year.
The company anticipates annual cost savings of at least $800 million when its actions are fully implemented.
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