Peloton: Complete restructuring of the leadership team – Founders leave
Peloton Executive Chairman and co-founder John Foley is leaving the fitness company as part of a broader leadership shakeup, adding to the upheaval at a business struggling to emerge from a deep recession. The company announced that other senior executives are also leaving the company as part of a broader restructuring strategy.
Foley, who helped launch Peloton in 2012 and served as CEO for 10 years, stepped down on Monday. He took on the role of executive chairman in February, when he handed over the reins to CEO Barry McCarthy, with stints at Spotify and Netflix.
Legal Counsel Hisao Kushi, one of the co-founders, is also headed for the exit.
Peloton investors initially applauded the changes, with shares rising 5.3% to $11.64. But the rally soon evaporated, with the stock down more than 2%.
The restructuring extends a year of turmoil at New York-based Peloton, which thrived in the early days of the pandemic but is now suffering from declining sales and mounting losses. Its shares have fallen about 90% in the past year.
What is Peloton?
Peloton is an exercise equipment company and international fitness brand that makes at-home gym equipment. It produces Wi-Fi- and Bluetooth-enabled stationary bikes and treadmills that can be used with or without a monthly membership, although a monthly membership is highly recommended to get the most out of the Peloton experience and workouts.
The original Peloton Bike is arguably the brand’s claim to fame, yet it also makes a Peloton Bike+ with extra amenities and enhanced features. Both bikes include traditional spin classes, scenic rides, bootcamp programs, yoga, meditation and kickboxing that you can enjoy from the comfort of your living room. Without a monthly subscription, you can still partake in a limited selection of classes and the Just Ride option, which offers basic cycling without an instructor.
The Peloton Tread, its treadmill product, offers a workout program geared towards running and walking. Peloton also offers a number of accessories, including light weights, dumbbells, water bottles, bike mats, cycling shoes, heart rate bands and earbuds, among others. Plus, if you need replacement parts, Peloton sells pedals, cleats, touchscreens and more on its website.
In addition, Peloton makes a full line of exercise and lounge apparel. It also offers a Peloton iPhone and Android exercise app for workouts on the go and a Peloton Guide that can be used for guided strength training via your TV. The biggest selling point of the Peloton brand, however, is the community that comes with it. With nearly six million subscribers on its platform, Peloton allows users to workout anytime, anywhere, and over live video with friends or loved ones.