Peloton CEO John Foley steps down, moving to executive chair as company cuts 2,800 jobs, report says
John Foley, CEO of Peloton.
Adam Jeffery | CNBC
Peloton plans to replace CEO John Foley and cut 2,800 jobs as it hopes to restructure its business amid slumping demand, According to a report in the Wall Street Journal.
Barry McCarthy, the former chief financial officer of Spotify and Netflix, will become CEO and chairman and join Peloton’s board of directors, the report said.
According to the Journal, the job cuts are expected to affect about 20 percent of Peloton’s company positions, but they won’t affect Peloton’s faculty roster or content.
A spokesperson for Peloton did not immediately respond to CNBC’s request for comment.
News of Foley’s resignation comes ahead of Peloton’s second-quarter financial results, which are due after markets close on Tuesday.
William Lynch, the chairman of Peloton, is also expected to step down as executive but remain on the board, Foley said in an interview with the Journal. Erik Blachford, director since 2015, is expected to leave the board, and two new directors will be added.
About a week ago, activist Blackwells Capital – which has less than 5% of the company’s shares – sent a letter to Peloton’s board urging Foley to step down as CEO and asking the company to see consider selling yourself.
Since then, reports have circulated that potential suitors may include Amazon or Nike. However, Foley along with other Peloton insiders had about 80% aggregate voting control as of September 30, which would make any deal practically impossible if without their consent.
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