Peloton said Monday that co-founders John Foley and Hisao Kushi would step down from their executive roles as the beleaguered exercise bike maker undergoes structural changes to trim financial losses and regain investor confidence.
Foley, the former CEO of Peloton, resigned from his role as executive chairman of the board effective Monday, while Kushi will leave his role as chief legal officer on Oct. 3, according to Peloton.
"It is time for me to start a new professional chapter," Foley said in a statement. Foley's resignation comes roughly seven months after he was replaced as chief executive of the company he co-founded 10 years ago. At the same time, the company announced it would, about 30% of its workforce.
Peloton got a major boost from the pandemic home-workout boom, but the momentum faded drastically as lockdowns ended and consumers felt more comfortable returning to their gyms. The company's stock is down about 68% year to date.
Barry McCarthy, a former executive at Spotify and Netflix, replaced Foley as CEO in February in a shakeup that also included the company scaling back manufacturing operations and reversing course on its plan for a factory in the US. In April, the company cut the price of Peloton bikes but increased the cost of subscriptions to its online library of fitness content.
Several companies have reportedly expressed interest in buying Peloton, including Amazon, which partnered with the exercise company to sell a selection of its products through the e-retailer – the first time Peloton made its merchandise available outside of its own online platform and showroom.
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