Topline
Peloton’s co-founder, executive chairman and former CEO John Foley is leaving the company, the at-home fitness giant announced Monday, as Peloton undertakes another drastic measure to spin around its slumping business.
John Foley at the company’s 2019 IPO
Key Facts
Foley’s resignation is effective immediately, the company said in the release.
Peloton also announced the resignation of Hisao Kushi, a fellow co-founder and its chief legal officer, who will leave October 3.
Foley, who resigned as Peloton’s CEO in February as its stock cratered, said in a statement he hopes to lead another start-up in the future.
Peloton shares dipped 2.4% after the market close to $10.78, paring its 7.2% gain during earlier trading.
Big Number
More than 90%. That’s how much Peloton’s stock is down from its January 2021 peak, as the company failed to adjust to declining demand as people returned to gyms and as it burned through cash. Forbes named Foley a billionaire in April 2021, though he lost much of his fortune as the stock collapsed, falling out of the billionaire ranks last November.
Key Background
Though he relinquished 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 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 peak of the Covid-19 pandemic. The company has implemented several measures – including thousands of layoffs, store closures and price hikes on some of its bikes – to improve its bottomline, but still reported a whopping $1.2 billion loss in the quarter ending June 30 and a 28% decline in revenue in the period compared to 2021.
Further Reading
Peloton’s CEO Might Be Out, But He Still Controls The Company And Can Make It Harder To Sell (Forbes)
Peloton CEO Steps Down, Company Cuts 2,800 Jobs As Part Of Overhaul (Forbes)
Peloton Unveils Price Hikes, Store Closures And Layoffs (Forbes)
Source: https://www.forbes.com/sites/dereksaul/2022/09/12/peloton-co-founder-john-foley-out-as-board-chair/