With the appointment of a new CEO and the announcement that Peloton plans to decrease its corporate employees by around 20%, the firm is now in the process of a major reorganisation.
After John Foley stepped down as CEO on Tuesday, the fitness hardware business announced that Barry McCarthy, the former CFO of Spotify and Netflix, will take over. According to CNN, McCarthy will take over as CEO on Wednesday.
McCarthy succeeds William Lynch, who is stepping down as president of the Peloton.
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Peloton also announced the appointment of a new CEO and the elimination of around 20% of its corporate employees. Approximately 2,800 people work for the company. Warehouse and delivery activities are also being reduced.
On Tuesday, Peloton said that it has completed a “detailed planning process” to address “critical areas of the business and reorganise our processes so that we can effectively and efficiently execute on our growth potential,” according to the company.
As part of their severance deal, employees who are let off will get a one-year digital membership to Peloton.
According to Bloomberg, Sam Bowen, senior vice president of hardware, and Rob Barker, senior vice president of commercial operations, are both departing Peloton as part of the reorganisation.
Activist investors forced Peloton to make these modifications after the company’s value dropped by roughly 80% in 2021.
In intraday trading on Tuesday, Peloton shares rose as much as 36% as some investors believe the reorganisation may position the business for a sale.
Earlier this month, it was reported that Amazon was in discussions to acquire Peloton. Additionally, a number of financial experts have suggested that Apple may acquire Fitbit in order to expand its range of health and wellness gear products.