Peloton hits reset with CEO change, job cuts

Peloton is replacing its CEO and slashing thousands of jobs, changes the exercise-bike-maker announced on Tuesday as it wrestles with weakening demand for its at-home fitness equipment.

Co-founder John Foley will step down as CEO and will become the executive chair.

The company named Barry McCarthy, a former CFO at Spotify and Netflix Inc, to take over starting Wednesday.

The executive shuffle comes after Foley fought a board-room brawl with activist investor Blackwells Capital as Peloton struggled to maintain the meteoric growth it saw in 2020 and 2021.

Shares have since tumbled nearly 80%.

Blackwells pushed for his removal and even urged the company to sell itself.

Last week, Reuters reported that Peloton has drawn interest from potential buyers including e-commerce giant Amazon.com.

Peloton said it would also cut roughly 2,800 jobs, affecting 20% of its corporate positions.

Shares of the company rose 10% in early trading on Tuesday.