Peloton co-founder, chairman and former CEO John Foley is leaving the company, the home fitness giant announced Monday, as Peloton takes another drastic measure to jumpstart its slumping business.
John Foley at the company’s 2019 IPO
© 2019 Bloomberg Finance LP
Foley’s resignation is effective immediately, the company said in the press release.
Peloton also announced the retirement of Hisao Kushi, a co-founder and chief legal officer, who will leave the company on October 3.
Foley, who stepped down as Peloton’s CEO in February when shares plummeted, said in a statement he hopes to lead another startup in the future.
Peloton shares fell 2.4% after the market traded near $10.78, capping gains of 7.2% during earlier trade.
More than 90%. That’s how much Peloton stock has fallen since its January 2021 peak as the company failed to adjust to falling demand as people returned to gyms and cash burned. Forbes named Foley a billionaire in April 2021, despite losing much of his wealth when the stock crashed and fell from the ranks of billionaires last November.
Despite relinquishing the CEO title to Barry McCarthy earlier this year, Foley remained highly influential at Peloton, where he and his close associates retained a majority of the voting shares. Foley co-founded Peloton in 2012 and transformed it into one of the largest companies in the world in less than a decade as investors and consumers flocked to the company amid stay-at-home orders at the height of the Covid-19 pandemic. The company has taken several actions — including thousands of layoffs, store closures, and price hikes on some of its bikes — to improve its bottom line, but still reported a whopping $1.2 billion loss for the quarter ended June 30 and a decline in sales of 28% in period compared to 2021.
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