Peloton Restructuring: CEO Steps Down, Company Cuts 2,800 Jobs
A developing story, change is afoot at Peloton.
The latest: Founder John Foley is stepping down from the CEO role, becoming executive chairman. Former Netflix and Spotify CFO Barry McCarthy is replacing Foley.
Following word that slow demand led the company to halt production of its connected equipment, Peloton is abandoning plans to build a manufacturing facility in Ohio.
Of note, former Precor CEO Rob Barker is departing the company just over a year after Peloton paid $420M for the commercial fitness brand.
Across the company, Peloton is eliminating 2,800 positions globally.
Deal or no deal. As calls to sell the company mount, potential suitors are circling. According to the Wall Street Journal, Amazon and Nike are weighing a bid, while rumors fly about interest from Apple, Disney, Netflix, and others.
But… Despite a change in title, Foley still wields voting control. Without his sign-off, there’s no deal to be done.
By the numbers. Reporting earnings for Q2 2022, Peloton cut fiscal year revenue projections by about one billion dollars, from a high of $4.8B to a top end of $3.8B. Yet, as net losses mounted—totaling $439.4M for the quarter ending December 31, 2021—the company’s subscription revenue grew 73% to $337.5M.
TBD. For now, Peloton’s stock is rallying on news of the ongoing restructuring. Getting back on the bike, and shifting gears, the company’s wild ride continues.