On Monday, Peloton announced that co-founder John Foley had resigned from the position of executive chairman of the company’s board. Another co-founder Hisao Kushi, who is the chief legal officer, is expected to leave the company on October 3. Another senior management official, Kevin Cornils, chief commercial officer and a longtime employee of Peloton, will be leaving the company on September 23.

The exits of these heavyweights in the company are a result of the executive shakeup of the fitness equipment company, which is struggling, by CEO Barry McCarthy. McCarthy wrote to the employees of Peloton where he thanked both Foley and Kushi for their pioneering efforts in the company. John Foley was the CEO of Peloton for a decade and became executive chair after McCarthy became the CEO.

CEO McCarthy has been launching a turnaround plan as he tackles multiple issues that are slowing the company’s advance. The executive shakeup is one many steps that have been taken to address the woes of the fitness company as its stock price has fallen drastically, the other being new hires and a new set of initiatives to get the company back in the run.

Peloton went public in 2019. The fitness equipment company saw an upward trajectory in its stock price and value in the early days of the pandemic as gyms were shut down and home fitness equipment demand could not meet the supply. In October 2020, the share price of Peloton hit $167. However, it has seen a 70 percent drop this year and the current price was at $11.05, as per Monday’s close.

Some of the new initiatives put forth by CEO Barry McCarthy include the following:
Rental options for Peloton Bikes.
Certification of Peloton Bikes for resale.
Selling Peloton Bikes and other products online on Amazon and other retailers.
Expanding the fitness company’s digital reach.

On Monday, John Foley also mentioned his time at Peloton and said that the time for him “to start a new professional chapter” had come and that he had a “passion for building companies and creating great teams.” He said that he was “excited to do that again in a new space.” He also said that he would always remain a “Peloton Member” and a “passionate advocate” for the fitness equipment company’s mission.

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