Peloton’s Executive Chairman John Foley has resigned from his role along with Chief Legal Officer Hisao Kushi, who co-founded the company with Foley.
The shakeup in the company’s executive ranks comes as CEO Barry McCarthy is taking dramatic steps to stop the company’s mounting losses and streamline its business.
“There wouldn’t be a Peloton without John Foley or Hisao Kushi,” McCarthy said in a noted to Peloton employees.
"Without John's unwavering commitment to his dream, there wouldn't be a passionate and devoted community of nearly 7 million Peloton Members. I want to thank John for paving the way."
Some of the key initiatives McCarthy has pursued since taking over the reins in February this year include the introduction of a rental option, sales of Peloton bikes on Amazon, certification of pre-owned bikes for resale, and efforts to expand Peloton’s subscriber base.
McCarthy’s efforts have been aimed at reviving the company’s business, which has been on a downhill trajectory since the reopening of the U.S. economy as consumers have returned to working out in gyms. The company’s stock price peaked at $167 in October 2020 but has since declined by 175% to $11.05.
The executive shuffle at the company will see the appointment of Karen Boone, the former president of Restoration Hardware (now known as RH), as the chairperson of the company’s board. Meanwhile, Tammy Albarrán, Uber’s chief deputy general counsel, will take over Kushi’s role.
“Now it is time for me to start a new professional chapter,” Foley said. “I have a passion for building companies and creating great teams, and I am excited to do that again in a new space.”
