Peloton Founders Are Leaving the Company

An anonymous reader quotes a report from Bloomberg: Peloton Executive Chairman and co-founder John Foley is stepping down from the fitness company as part of a leadership shake-up, extending the turbulence at a business trying to pull out of a deep slump. Foley, who helped start Peloton in 2012 and served as chief executive officer for 10 years, is resigning effective Monday, the company said in a statement. Foley took the executive chairman role in February when he handed the reins to CEO Barry McCarthy, a veteran of Spotify and Netflix. Chief Legal Officer Hisao Kushi, another co-founder, is also headed for the exits. He'll be replaced in that role by Tammy Albarran, who Peloton recruited from Uber Technologies Inc. The chairman role, meanwhile, will be filled by Karen Boone, a former Restoration Hardware executive who currently serves as lead independent director. Peloton investors initially applauded the changes, sending the shares up as much as 5.3% to $11.64 in extended trading on Monday. But the rally soon evaporated, with the stock declining more than 2%. The reshuffling extends a year of upheaval 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 are down about 90% over the past year, and the company has struggled to work through a glut of inventory. Separately, Chief Commercial Officer Kevin Cornils is also leaving Peloton and won't be replaced. Some of Cornils's responsibilities will be assumed by Dion Sanders as he takes the role of chief emerging business officer, according to an internal memo from McCarthy reviewed by Bloomberg. Chief Content Officer Jen Cotter will assume control of apparel and accessories, showing that the company remains committed to that market. Albarran will take over Peloton's legal operations on Oct. 3. She helped oversee a corporate makeover at Uber, which set out to change its image in 2017 after its hard-charging style led to scandals and a strained relationship with drivers. Peloton looks to draw on the experience of Albarran and Boone to "help move the company forward into our next chapter of growth," McCarthy said.

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